On March 27, President Donald Trump issued a warning to the European Union (EU) and Canada regarding potential additional tariffs should they unite in retaliation against the significant trade taxes recently enacted by the United States.

In a message on his social media platform, Trump stated, "If the European Union works with Canada to economically harm the United States, massive tariffs, far greater than those currently planned, will be imposed on both to protect the best friend that each of those two countries has ever had!"

Earlier that same day, Trump announced a new 25% tariff on "all cars not made in the United States," with this measure set to take effect on April 2. The proposed tariff represents a notable increase to the already complex landscape of U.S. tariffs affecting foreign automotive manufacturers.

Trump's announcements had an immediate impact on European stock markets, particularly affecting automakers and equipment manufacturers.

In Frankfurt, shares plunged significantly, with BMW experiencing a 4.41% decrease, Mercedes down 5.38%, Porsche falling by 4.76%, and Volkswagen declining 3.65%.

Meanwhile, in Paris, Stellantis shares dropped by 5.16%.

Overall, the automotive sector could see a total tax burden increase to 27.5% due to these tariffs.

"We will make those who do business in our country and take our wealth pay," Trump justified his stance, referring to existing tariffs on steel and aluminum affecting imports from Canada, a significant supplier of these materials.

The American President's latest threats have incited reactions from European officials.

French Economy Minister Éric Lombard expressed concern about what he termed an aggressive measure by the U.S., stating, "We have a war situation on our continent, and our American ally is abruptly changing its economic policy.

This tariff war must end as it will jeopardize our economies." Lombard emphasized the need for a response, saying, "Either we let them do this, or we retaliate."