A few hours after announcing 25-percent tariffs on new vehicles imported into the U.S., President Donald Trump warned of additional tariffs on the European Union and Canada if they collaborate to “economically harm” their “best friend,” the United States.

“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!”

- Donald Trump, on Truth Scoial

The 25% tariffs on imported cars and auto parts announced yesterday will affect the main trading partners of the U.S., including Mexico, Canada, South Korea, Japan and Germany.

Trump added that “This is the beginning of America's Liberation Day. We’re going to take back just some of the money that has been taken from us.”

Analysts and industry specialists generally agree that the cost of the tariffs will be passed on to consumers. It’s estimated the average price of new vehicles could rise by some $6,000 USD, and quite quickly.

It’s also clear that the tariffs, due to take effect at the stroke of midnight as April 2nd turns into April 3rd, represent a significant threat to the European and Canadian auto industries. They mark the most dramatic escalation in the trade war that President Trump is currently waging against countries that have long been staunch allies of the U.S.

Analysts are further warning that the tariffs could have serious consequences for the global economy.

In response to the auto tariff announcement, European Commission President Ursula von der Leyen expressed her deep regret over the U.S. decision and pledged to protect European businesses.

“The EU will continue to seek negotiated solutions, while safeguarding its economic interests. 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.”

- European Commission President Ursula von der Leyen