The European Union is measuring up its response to the anticipated new tariffs being imposed by the US administration. But what tools does it have?

President Trump’s plan to impose a 25 percent tariff on cars and parts imported into the U.S. sent a shudder through the global car industry. Markets in Asia, Europe and the U.S. wobbled yesterday as many automakers’ stock prices fell.

Canadian Prime Minister Mark Carney told President Donald Trump Wednesday that his nation will retaliate against the United States with tariffs of its own if Trump presses forward with his promised levies – potentially escalating what is already developing into an ugly and damaging trade war.

Germany's economy minister and its autos association slammed Donald Trump's newly-announced 25% tariff on imported vehicles to the U.S. as bad for European and U.S. economies, calling for urgent negotiations to ward off a spiralling trade war.

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.

In Germany, Europe’s most populous nation and its largest economy, Trump’s tariffs stoked fears of the end of trade-based prosperity.

President Trump on Thursday threatened to impose larger tariffs on the European Union and Canada if they team up against the U.S., as an escalating trade war with the two allies continues. “If the

President Donald Trump signed a proclamation to implement a 25% tariff on auto imports and floated further duties on the EU and Canada, expanding a trade war and triggering threats of retaliation.

Trump took to Truth Social to threaten "large scale Tariffs, far larger than currently planned" on the European Union.