The U.S. government has escalated its pressure on the European Union by warning it may soon impose 25% tariffs on imported cars, according to Bloomberg.
The move signals a potential deepening of the transatlantic trade dispute, which has already raised concerns among investors and policymakers.
The threat follows a renewed campaign by U.S. officials against European car imports, with fears of a broader conflict emerging.
European markets have been particularly sensitive to such developments, as trade tensions often ripple through global supply chains and investor sentiment.
This development builds on prior warnings from U.S. leadership, which has increasingly targeted European automotive exports as part of a broader strategy to protect domestic industries.
The EU has yet to respond formally, but the prospect of retaliatory measures remains a looming risk.