EU Prepares Response to Trump Car Tariffs

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

European Commission President Ursula von der Leyen said she “deeply regrets” the latest tariff fusillade from President Donald Trump: 25% levies on all cars not made in the US. The new tariffs, which will hit German automakers in particular, will take effect on April 2 — the same day Trump has promised a broader range of so-called reciprocal tariffs. “That’s the real Liberation Day of America,” he said, adding that round will be “very lenient.” He later threatened to impose measures “far larger than currently planned” if the EU worked with Canada against the US. The EU expects Trump to apply a double-digit tariff rate across the bloc, rather than setting different rates for each member state, we’re told. EU officials meeting with US counterparts in Washington this week see little chance of averting the next round. The bloc will take some time to assess its retaliatory plans, but it has built a robust toolbox since Trump’s first term that it can wield.