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Brinks Report > Blog > World > Will the US and EU Go to War—Over Cars?
World

Will the US and EU Go to War—Over Cars?

Dolon Mondal
Last updated: March 27, 2025 11:02 am
Dolon Mondal
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Will the us and eu go to war—over cars?
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Trulli

The European Union has taken a strong stance against the United States’ proposed auto tariffs, with EU Chief Ursula von der Leyen firmly rejecting the move. Instead, she is pushing for peaceful negotiations to resolve the growing trade tensions.

The US has been considering heavy tariffs on European cars, claiming unfair competition and national security risks. If imposed, these tariffs could hurt major European automakers—many of which have factories and jobs in the US. The EU, however, argues that tariffs will backfire, raising prices for consumers and disrupting supply chains.

Trulli

EU’s Strategy: Talk, Don’t Tax

Rather than escalating the conflict, the EU wants to:

  • Renegotiate trade deals to ensure fair rules.
  • Boost industry cooperation between US and EU carmakers.
  • Involve the WTO if needed, to keep trade fair under global rules.

This isn’t just about cars—it could shape future trade wars. A resolution could set an example for handling disputes without damaging the global economy.

Both sides are under pressure to find common ground. Will diplomacy win, or will tariffs trigger a full-blown trade war? The world is watching.

Also Read: Canada Fires Back: PM Carney Calls Trump’s Auto Tariffs a ‘Direct Attack’

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TAGGED:auto tariffsEU US trade warglobal economytrade negotiationsUrsula von der Leyen
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