In addition to Japan and South Korea, Europe is a major exporter of cars to the US. Car makers like Volkswagen are particularly affected, as car parts will be included in the tariffs. Furthermore, Mexico, where many manufacturers have invested in the US market, is also subject to steeper tariffs.

European carmakers are trying to work out how much their prices might have to rise in response to looming U.S. import tariffs, industry sources said.

The European association of automotive suppliers (CLEPA) on Thursday called on policymakers in Europe to prioritise finding solutions over trade barriers after U.S. President Donald Trump announced 25% tariffs on foreign-made vehicles.

President Trump’s 25% tariffs on all vehicles imported to the U.S. will hurt global automakers as well as U.S. domestic manufacturing, the European Automobile Manufacturers’ Association said Thursday.

Companies appear to be front-loading shipments of cars to the US from Europe and Asia ahead of the looming tariffs, shipping data shows.

U.S. President Donald Trump's announcement of a 25% tariff on auto imports rippled throughout the world on Thursday, as global carmakers warned of immediate price hikes and dealers raised fears of job losses in big auto-exporting countries,

European shares fell to their lowest in nearly two weeks following President Trump's announcement of 25% import tariffs on vehicles and foreign auto parts. The auto sector led the decline, with major companies experiencing significant losses.

European leaders expressed dismay Wednesday at President Trump's announcement of a 25% tariff on auto imports while promising to quickly assess their options. "I deeply regret the US decision," said Ursula von der Leyen,