Summary

Trump threatened to impose “far larger” tariffs on the EU and Canada if they unite to harm U.S. economic interests.

The warning follows his decision to set a 25% tariff on foreign-made cars and parts, starting April 2, expected to generate over $100 billion annually.

Markets reacted negatively, with automaker stocks dropping. Canada and the EU criticized the move, warning of potential retaliation.

Analysts predict the tariffs will increase car prices by $5,000 to $10,000, raising inflation concerns amid low consumer confidence.