Canada, EU, Japan Consider Response to Trump’s Tariffs on Imported Cars

Responding to the announcements, Trump warned the European Union against working with Canada, threatening further escalation.

Opel cars are parked on the ground of the Opel car factory in Ruesselsheim near Frankfurt, Germany, on March 27, 2025. Michael Probst/AP Photo

Canada and Japan are considering retaliatory measures after the White House on March 26 announced 25 percent U.S. tariffs on imported cars and car parts, starting in April. The EU stated that it was assessing the latest tariff announcement.

The U.S. tariffs on automobiles will go into effect on April 3, one day after the United States is set to impose broad reciprocal tariffs on its trading partners, according to the White House proclamation. The tariffs on auto parts are set to go into effect no later than May 3.

Speaking to reporters at the Oval Office, Trump said that the tariffs would “continue to spur growth like you haven’t seen” and that America’s automobile business “will flourish like it’s never flourished before.”

Canadian Prime Minister Mark Carney on March 26 described the tariffs as a “direct attack” on Canadian workers at a press briefing in Kitchener, Ontario, and said the country would consider taking retaliatory actions.

“We will defend our workers, will defend our companies, will defend our country, and will defend it together,” Carney said. “This will hurt us, but through this period, by being together, we will emerge stronger.”

When asked when Canada would react, Carney said: “It will happen soon. ... We have options. We can introduce retaliatory tariffs.”

He did not give details, noting that he needed to see the details of Trump’s executive order first.

Canada has already announced retaliatory tariffs totaling $155 billion on U.S. imports in response to Trump’s order to place 25 percent tariffs on Canadian goods.

Carney said he has convened a meeting with his Canada–U.S. relations Cabinet committee on March 27 to discuss a response to the tariffs. He told reporters that it would also be “appropriate” to speak with Trump soon.

In Europe, European Commission President Ursula von der Leyen said in a statement on March 26 that she deeply regrets Trump’s decision, noting that the automotive industry is “a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic.”

“As I have said before, tariffs are taxes—bad for businesses, worse for consumers equally in the US and the European Union,” von der Leyen said.

She said Europe would assess Trump’s announcement, along with other measures it anticipates will be announced by the White House in the next few days.

“The EU will continue to seek negotiated solutions, while safeguarding its economic interests,” von der Leyen said. “As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union.”

Responding to the announcements, Trump warned the EU against working with Canada.

“If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” Trump wrote on Truth Social on the morning of March 27.

Japan Putting ‘All Options on the Table’

Japan also expressed regret over Trump’s decision, with Japanese Prime Minister Shigeru Ishiba telling reporters on March 27 that Tokyo will put “all options on the table” in dealing with Washington’s announcement.

“Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for [Washington] to apply uniform tariffs to all countries. That is a point we’ve been making and will continue to do so,” Ishiba told parliament.

“We need to consider what’s best for Japan’s national interest. We’re putting all options on the table in considering the most effective response.”

According to a White House fact sheet, the 25 percent tariffs will be applied to imported passenger vehicles, including sedans, SUVs, crossovers, minivans, cargo vans, and light trucks, as well as key automobile parts such as engines, transmissions, powertrain parts, and electrical components, with processes to expand tariffs on additional parts if necessary.

The White House noted that 50 percent of the roughly 16 million cars purchased in the United States last year were imports. Of the other 8 million assembled in America and not imported, the average domestic content is conservatively estimated at only 50 percent and is likely closer to 40 percent, it stated.

“Therefore, of the 16 million cars bought by Americans, only 25 percent of the vehicle content can be categorized as Made in America,” the fact sheet reads.

Trump is imposing the tariffs to protect the U.S. auto industry, “which is vital to national security and has been undermined by excessive imports threatening America’s domestic industrial base and supply chains,” according to the fact sheet.

The United Auto Workers union, which represents factory employees at the three big U.S. automakers, welcomed Trump’s announcement.

“We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working class communities for decades. Ending the race to the bottom in the auto industry starts with fixing our broken trade deals, and the Trump administration has made history with today’s actions,” UAW President Shawn Fain said in a statement.

“These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country, and it is now on the automakers, from the Big Three to Volkswagen and beyond, to bring back good union jobs to the U.S.”

Reuters contributed to this report.