Europe's Just Pulled the Trigger—Counterstrike to Cripple the Entire U.S. Auto Industry!
The European Commission wasted no time in responding. Ursula von der Leyen, President of the European Commission, made it clear that Europe won’t sit idly by. Speaking in Brussels, she said the EU is fully prepared to defend its economic interests, and any attempt by the US to impose unfair tariffs will be met with a firm response.
That response came in the form of a set of retaliatory tariffs worth a staggering €26 billion. And this isn’t just about matching Trump's car tariffs—Europe is going after key American industries, including agriculture, technology, and consumer goods.
What makes this move even more significant is how targeted these tariffs are. Unlike broad economic measures, these are calculated political strikes. The EU is focusing its tariffs on goods produced in Republican-led states, directly challenging Trump's strongest base of support. Soybeans from Louisiana—where House Speaker Mike Johnson is a major political figure—will now face steep new duties. Meanwhile, beef and poultry from Kansas and Nebraska, along with agricultural exports from Alabama, Georgia, and Virginia, have all been thrown into the crosshairs.
🔔 Subscribe now with all notifications on for more!
📺 Watch the entire video for more information!
🎞️ Copyright Disclaimer under section 107 of the Copyright Act 1976, allowance is made for “fair use” for purposes such as criticism, comment, news reporting, teaching, scholarship, education, and research. Fair use is a use permitted by copyright statutes that might otherwise be infringing.
©️ If you are the owner of the materials used in this video, let us know in the comments. We will follow your request immediately.
The European Commission wasted no time in responding. Ursula von der Leyen, President of the European Commission, made it clear that Europe won’t sit idly by. Speaking in Brussels, she said the EU is fully prepared to defend its economic interests, and any attempt by the US to impose unfair tariffs will be met with a firm response.
That response came in the form of a set of retaliatory tariffs worth a staggering €26 billion. And this isn’t just about matching Trump's car tariffs—Europe is going after key American industries, including agriculture, technology, and consumer goods.
What makes this move even more significant is how targeted these tariffs are. Unlike broad economic measures, these are calculated political strikes. The EU is focusing its tariffs on goods produced in Republican-led states, directly challenging Trump's strongest base of support. Soybeans from Louisiana—where House Speaker Mike Johnson is a major political figure—will now face steep new duties. Meanwhile, beef and poultry from Kansas and Nebraska, along with agricultural exports from Alabama, Georgia, and Virginia, have all been thrown into the crosshairs.
🔔 Subscribe now with all notifications on for more!
📺 Watch the entire video for more information!
🎞️ Copyright Disclaimer under section 107 of the Copyright Act 1976, allowance is made for “fair use” for purposes such as criticism, comment, news reporting, teaching, scholarship, education, and research. Fair use is a use permitted by copyright statutes that might otherwise be infringing.
©️ If you are the owner of the materials used in this video, let us know in the comments. We will follow your request immediately.
Category
🗞
NewsTranscript
00:00Good evening and welcome. The President Trump-led trade war rocking both friends and foes tonight.
00:05Donald Trump is making headlines again, and this time it's sending shockwaves through
00:09the global economy. In a move that has instantly escalated tensions between the United States
00:14and Europe, Trump has imposed a hefty 25 percent tariff on European car imports. The decision
00:19officially announced just days ago is being pitched by his administration as a necessary
00:24step to correct what they see as longstanding trade imbalances. But across the Atlantic,
00:29the response has been swift and aggressive. The European Union isn't backing down. In
00:34what many are calling a full-scale trade battle, the EU has retaliated with its own set of
00:39tariffs designed to hit America where it hurts the most. We're not just talking about European
00:44cars getting more expensive in the U.S. This is a direct attack on industries deeply embedded
00:49in the American economy. And the timing? Absolutely brutal. The European Commission wasted no
00:54time in responding. Ursula von der Leyen, president of the European Commission, made
00:58it clear that Europe won't sit idly by. Speaking in Brussels, she said the EU is fully prepared
01:04to defend its economic interests, and any attempt by the U.S. to impose unfair tariffs
01:09will be met with a firm response. That response came in the form of a set of retaliatory tariffs
01:14worth a staggering 26 billion euros. And this isn't just about matching Trump's car tariffs.
01:20Europe is going after key American industries, including agriculture, technology and consumer
01:25goods. What makes this move even more significant is how targeted these tariffs are. Unlike
01:30broad economic measures, these are calculated political strikes. The EU is focusing its
01:35tariffs on goods produced in Republican-led states, directly challenging Trump's strongest
01:40base of support. Soybeans from Louisiana, where House Speaker Mike Johnson is a major
01:44political figure, will now face steep new duties. Meanwhile, beef and poultry from Kansas
01:50and Nebraska, along with agricultural exports from Alabama, Georgia and Virginia, have all
01:55been thrown into the crosshairs. And if this sounds familiar, that's because it is. We've
01:59seen this exact strategy before. Back in Trump's first term, he launched a similar wave of
02:04tariffs on EU steel and aluminum. And in response, Europe hit back with tariffs on Harley-Davidson's
02:10bourbon whiskey and Levi's jeans. Now history is repeating itself, but this time the stakes
02:15are even higher. Trump's tariff plan aims to bring manufacturing jobs back to America,
02:20arguing that higher import duties will force automakers to build their cars on U.S. soil.
02:25But that strategy comes with major risks. And it's not just Europe that's warning about
02:29the consequences. Even within the U.S., industry leaders and economic analysts are sounding
02:34the alarm. The American Chamber of Commerce to the EU released a statement urging both
02:39sides to de-escalate before real damage is done. They warn that this isn't just about
02:44the car industry. This trade war could spiral into a wider economic crisis, impacting jobs,
02:50investments, and even long-term security alliances between the U.S. and Europe. Meanwhile,
02:56the EU's response is crystal clear. They're not just reacting. They're preparing for a
03:00prolonged economic confrontation. Alongside the new tariffs, the European Commission is
03:05reintroducing trade restrictions that were originally put in place during Trump's first
03:09presidency but were later suspended under Biden. Those measures will kick in on April
03:141st, followed by an even larger wave of duties on April 13th, targeting $19.6 billion in
03:20additional American exports. But the real question is, who's going to feel the impact
03:25first? For starters, the U.S. auto industry is on edge. American car manufacturers rely
03:30heavily on European parts and materials, from high-tech German transmissions to precision-engineered
03:36Italian components. And while Trump's goal is to boost domestic manufacturing, the reality
03:41is that many American automakers can't simply replace these parts overnight. The new tariffs
03:46could mean higher production costs, longer delays, and inevitably more expensive cars
03:51for American consumers. And that's just the beginning. On the other side of the Atlantic,
03:55European leaders are now weighing their next moves carefully. The EU is already exploring
04:00ways to diversify its trade partnerships, with China and other Asian markets stepping
04:04in as potential long-term allies. If Europe strengthens its economic ties with China,
04:09it could fundamentally shift global trade patterns, putting the U.S. at a serious disadvantage.
04:14And then there's the energy market, an industry already under immense pressure. The U.S. is
04:18a major exporter of liquefied natural gas, LNG, to Europe, and up until now, that relationship
04:24has been growing. But with trade tensions on the rise, European energy companies may
04:28start looking elsewhere, potentially reducing their reliance on U.S. energy imports. For
04:33the American auto industry, the timing of these tariffs couldn't be worse. The U.S.
04:37has been trying to strengthen its domestic car manufacturing, but there's a huge problem.
04:41Nearly every major American automaker relies on European parts. Precision-engineered transmissions
04:48from Germany, high-tech electronic systems from France, even simple mechanical components
04:52from Italy, all of them are now facing heavy import taxes. That means American automakers
04:58are about to see their production costs skyrocket. Ford, General Motors, and Tesla are among
05:02the biggest names feeling the pressure. All three companies have significant supply chains
05:07that run through Europe. For them, this isn't just a minor inconvenience. It's a major disruption
05:13that could lead to price increases, production delays, and even layoffs. Tesla, which has
05:17built a huge reputation on cutting-edge technology, depends on European-made semiconductors and
05:22battery components. If those become more expensive, Tesla's production costs could soar, forcing
05:27the company to either absorb the financial hit or pass it on to consumers. Either way,
05:32it's bad news. And then there's the EU's counter-strike. A 25% tariff on American-made
05:37cars heading to Europe is set to make them far less competitive. For years, American
05:41brands like Jeep, Ford, and Cadillac have been fighting to carve out a bigger share
05:45of the European market. But with these new tariffs, European consumers may start looking
05:50elsewhere. Why pay more for a Jeep Wrangler when they could get a more affordable German
05:54or Japanese alternative? Even European car dealerships are bracing for impact, knowing
05:58that demand for American vehicles is about to plummet. The numbers tell a grim story.
06:03Last year alone, American automakers exported €56 billion worth of vehicles to Europe.
06:08That market is now under threat. With a 25% tariff in place, US automakers could see their
06:14European sales drop sharply, leading to factory slowdowns, lost revenue, and job cuts. The
06:19worst-hit companies will be those that specialize in larger vehicles, SUVs, and trucks, which
06:26are already less popular in Europe due to strict emissions regulations and higher fuel
06:30costs. But the pain doesn't stop with the car industry. The EU's retaliatory measures
06:35are taking aim at American agriculture, another sector that's deeply tied to Republican-led
06:40states. Soybeans, beef, poultry, and other agricultural products are now on the EU's
06:46tariff list. And that's going to hit American farmers hard. Many of them are still recovering
06:50from the last trade war, when Trump's earlier tariffs on China led to retaliatory tariffs
06:56on US farm goods. Now they're facing another economic squeeze, but this time it's coming
07:00from Europe. The Midwest, often referred to as the breadbasket of America, is especially
07:05vulnerable. States like Iowa, Nebraska, and Kansas depend heavily on agricultural exports,
07:10and Europe has been one of their most important markets. If demand drops because of tariffs,
07:14farmers could see prices for their products collapse, leading to financial hardships and
07:19potential farm closures. Many of these farmers were key supporters of Trump in previous elections,
07:24but if their livelihoods are threatened, that support could start to erode. Meanwhile, major
07:28agricultural companies like Cargill, Tyson Foods, and Archer Daniels Midland are scrambling
07:33to figure out their next moves. Some are considering shifting exports to other markets, but that's
07:38easier said than done. Trade deals take time to renegotiate, and in the short term there
07:42may not be enough alternative buyers to make up for the lost European sales. And it's not
07:47just farmers who are in trouble. American companies that manufacture agricultural machinery
07:52– think John Deere and Caterpillar – are also at risk. If farmers cut back on spending
07:58due to declining profits, these companies could see their own sales drop. That in turn
08:02could lead to factory closures and layoffs, creating a domino effect that spreads throughout
08:07the entire industry. Across the Atlantic, European manufacturers are also starting to
08:11feel the heat. The EU's auto industry is heavily integrated with the U.S. market, and
08:16many European automakers build cars in America for export to Europe. BMW, for example, produces
08:22a large number of its SUVs in South Carolina, and Mercedes-Benz has a major plant in Alabama.
08:29If the tariffs make it too expensive to continue those operations, these companies might have
08:33to scale back their investments in the U.S., leading to job losses on both sides of the
08:38ocean. At the same time, European steel manufacturers are bracing for losses. The EU currently exports
08:46millions of tons of steel to the United States, but with Trump's new 25% tariff on steel
08:51and aluminum imports, that market is shrinking fast. The European steel industry estimates
08:56that it could lose up to 3.7 million tons of exports, which would be a significant blow
09:02to an industry already facing challenges from rising production costs and competition from
09:06China. For both sides, the economic consequences are undeniable. And yet, despite the warnings
09:12from industry leaders, economists, and even some political allies, the Trump administration
09:17is showing no signs of backing down. White House officials have defended the tariffs,
09:21arguing that they're necessary to protect American industries from unfair competition.
09:26They point to the fact that the EU imposes a 10% tariff on American cars, while the U.S.
09:31previously had only a 2.5% tariff on European vehicles. According to Trump, the new 25%
09:38tariff is simply a way of leveling the playing field. But critics argue that this strategy
09:42is deeply flawed. Rather than encouraging fair trade, they say, it's provoking an economic
09:47war that could leave both sides worse off. The American Chamber of Commerce has warned
09:51that escalating tariffs could end up costing the U.S. economy billions of dollars and jeopardizing
09:57thousands of jobs. Meanwhile, European leaders are calling for de-escalation, urging the
10:01U.S. to come to the negotiating table before the situation spirals out of control. EU Trade
10:06Commissioner Maros Shevchovic has already made one attempt to reach a diplomatic solution,
10:11traveling to Washington last month to discuss alternatives. But those talks ended without
10:16progress. Shevchovic later told reporters that Europe is willing to negotiate, but only
10:20if the U.S. is serious about finding a compromise. As he put it, you need both hands to clap.
10:26In other words, Europe won't be the only one making concessions. And if history has taught
10:31us anything, it's that trade wars never happen in a vacuum. The economic consequences are
10:36never limited to just the industries initially involved. Once tariffs start going into effect,
10:41they trigger chain reactions that ripple through supply chains, financial markets and
10:45political alliances. This is exactly what's happening now. What started as a dispute over
10:50auto tariffs has expanded into a massive trade conflict that is now pulling in energy, technology
10:56and even national security concerns. The political fallout is already in motion. On both sides
11:01of the Atlantic, leaders are struggling to manage the rising tensions, and the pressure
11:06is only growing. In Washington, Trump's hardline stance on tariffs is playing directly into
11:10his 2024 election strategy, positioning him as the defender of American industry. His
11:15base has always responded well to his America First message, and his administration sees
11:19this fight as a way to reinforce that narrative. But there's a problem. Many of the states
11:24that are being hit the hardest by this trade war are the very states that Trump needs to
11:28win. The American auto industry, which employs over a million workers, is now facing higher
11:34costs, potential layoffs and declining exports to Europe. Factories in Michigan, Ohio and
11:39Pennsylvania, all crucial battleground states, could soon see job cuts as the consequences
11:44of these tariffs start to sink in. And then there's the farming sector. Midwestern states
11:49that rely on agricultural exports to the EU are bracing for severe economic pain, and
11:54that could have major political implications. If farmers, steelworkers and autoworkers begin
12:00to turn against Trump's trade policies, his re-election bid could face an unexpected
12:05challenge. Trump may be counting on the idea that his base will support him no matter what,
12:09but if their livelihoods are on the line, that loyalty might not be as unshakable as
12:13he hopes. Over in Europe, the pressure is just as intense. EU leaders are trying to
12:17strike a delicate balance. They want to stand up to Trump's aggressive trade tactics while
12:22avoiding a prolonged economic battle that could hurt European businesses and workers.
12:27Many European automakers, including BMW, Volkswagen and Mercedes-Benz, manufacture vehicles in
12:33the United States for export to Europe. These companies are now caught in the middle of
12:37a geopolitical showdown, facing tariffs on both sides. Ursula von der Leyen, the President
12:43of the European Commission, has repeatedly emphasized that the EU is open to negotiations.
12:48But she's also made it clear that Europe will not be bullied into an unfavorable deal.
12:53She recently warned that tariffs don't just hurt businesses, they hurt consumers, raise
12:57prices and disrupt supply chains, making both Europe and America worse off in the long run.
13:02And this isn't just an economic dispute anymore. The trade war is putting serious
13:06strain on US-EU relations. And that could spill over into other areas, including security
13:11cooperation, climate policy, and even diplomatic relations with China and Russia. For years,
13:17the US and Europe have been strong allies, working together on issues ranging from defense
13:22to economic policy. But now, that alliance is being severely tested.
13:26And this brings us to a major turning point. What happens if other global players step
13:30in to take advantage of this crisis? The biggest winner in all of this could be China. Beijing
13:35has been actively working to expand its trade relationships with Europe. And this US-EU
13:40trade war might be the perfect opportunity to deepen those ties. If European businesses
13:45start looking for new suppliers and partners, China could step in as a more stable alternative,
13:50shifting the balance of global trade in a way that hurts American influence.
13:54And it's not just China. Japan and South Korea, both of which already have extensive trade
13:59agreements with the EU, could see a surge in exports to Europe as American car sales
14:04decline. Automakers like Toyota, Honda, Hyundai, and Kia could benefit massively if US-made
14:09cars become too expensive due to tariffs. This means that American businesses aren't
14:13just losing money, they're losing market share. And once a company loses its foothold
14:17in a competitive market, it's incredibly difficult to get it back.
14:21Meanwhile, the energy sector is facing its own set of challenges. The United States is
14:25one of the world's largest exporters of liquefied natural gas, LNG. And Europe has relied heavily
14:31on US gas imports, particularly in recent years as it tries to reduce its dependence
14:36on Russian energy. But now, with trade tensions escalating, European energy companies are
14:41starting to look elsewhere. Alternative suppliers like Qatar and Australia could step in to
14:45replace American energy imports. And if that happens, US energy companies could lose billions
14:51in potential revenue. This wouldn't just be a temporary shift. If Europe decides to
14:55commit to new long-term energy partnerships, US energy firms could find themselves permanently
15:00locked out of the European market. And the EU might not stop there. Some European leaders
15:05are already discussing the possibility of tightening environmental regulations on energy
15:09imports, a move that could make it even harder for American fossil fuel companies to do business
15:14in Europe. And if Europe decides to ramp up its investment in renewable energy as a way
15:18to cut ties with US energy exports, that could permanently shift global energy markets, putting
15:24American oil and gas producers in a much weaker position. Then there's the tech sector. For
15:28years, the US and the EU have collaborated closely on technology, cyber security and
15:33semiconductor manufacturing. But now, there's a real risk that those partnerships could
15:38start to unravel. One of the biggest concerns? Semiconductors. The global semiconductor industry
15:42is highly interdependent. The US dominates chip design. Europe leads in advanced manufacturing
15:48equipment. And Asia specializes in mass production. If tariffs start disrupting this delicate
15:53balance, it could lead to shortages, supply chain disruptions and higher costs for tech
15:58companies worldwide. And that's just the beginning. American tech giants like Intel, Apple, Nvidia
16:03and Qualcomm are now facing potential regulatory hurdles in Europe as EU leaders consider imposing
16:08new data privacy and antitrust rules in response to Trump's trade aggression. If this turns
16:13into a full-blown tech war, companies on both sides could suffer. But in the long run, it
16:18might push Europe to become less reliant on American tech altogether. Back in the US,
16:22financial markets are already feeling the pressure. Stock prices for major automakers,
16:27energy firms and agricultural companies have been fluctuating wildly as investors try to
16:32assess the long-term impact of these tariffs. The auto industry has always been a key indicator
16:37of broader economic trends. And its current instability is sending warning signs through
16:41Wall Street. Some analysts are even predicting a slowdown in industrial production and consumer
16:46spending, warning that if this trade war drags on, it could push both the US and Europe closer
16:51to a recession. But perhaps the biggest concern is the long-term impact on global alliances. The
16:56trade war between the United States and the European Union is no longer just about tariffs
17:01on cars and steel. It has become a full-scale economic battle with consequences that are
17:05growing more severe by the day. With both sides refusing to back down, the stakes are higher than
17:10ever. And the effects are beginning to ripple through industries that had nothing to do with
17:14the initial dispute. As the April deadline approaches, businesses, workers and consumers
17:18are bracing for impact, unsure of what comes next. The reality is that trade wars are
17:23unpredictable. The longer they last, the harder they are to control. What might have started as
17:27a strategy to protect American jobs has now escalated into something much bigger. Something
17:32that could reshape global trade for years to come. With neither the US nor the EU showing
17:38signs of backing off, the rest of the world is watching closely, waiting to see whether this
17:42conflict will be resolved through diplomacy or whether it will spiral into an even deeper
17:47economic crisis. For American consumers, the impact of these tariffs is about to become
17:52painfully clear. Cars, groceries and even electronics are set to become more expensive as
17:57the cost of importing European goods increases. Car dealerships across the US are already
18:02warning that prices will rise significantly if the 25 percent tariff on European automobiles
18:07remains in place. Brands like BMW, Mercedes-Benz and Audi have long been favorites among
18:13American consumers. But with tariffs making these cars significantly more expensive, many
18:18buyers may have to rethink their choices. And it's not just luxury vehicles. Even American
18:23made cars are set to see price hikes as they rely heavily on European parts and components.
18:28For European automakers, the situation is just as troubling. With the EU imposing its own
18:3325 percent tariff on American cars and auto parts, companies like Ford and Tesla, which have spent
18:38years trying to build a presence in the European market, are now facing serious challenges.
18:43European consumers already dealing with inflation and rising living costs may simply opt to buy
18:48homegrown brands instead of paying extra for American vehicles. If that happens, US car
18:54manufacturers could see their market share in Europe shrink dramatically. Beyond the auto
18:58industry, the agricultural sector is one of the hardest hit. The EU's retaliatory tariffs are aimed
19:03at products from Republican-led states, including soybeans from Louisiana, beef from Nebraska,
19:08and produce from Georgia and Alabama. These tariffs are designed to put political pressure
19:13on Trump by targeting key regions that helped him win in 2016 and 2020. For American farmers,
19:19who are still recovering from the impact of previous trade wars, this is yet another blow.
19:23Many are now questioning whether they can afford to keep operating if demand for their products
19:27in Europe declines. With farmers and automakers both facing serious economic consequences,
19:33labor unions and trade groups are starting to push for a resolution. Automotive industry leaders are
19:38warning that prolonged tariffs could lead to job losses, factory closures, and a slowdown in
19:43investment. In response, some US automakers are considering shifting production to Mexico or
19:48Canada to avoid the tariffs. But that move comes with its own risks. If Trump decides to extend
19:53tariffs to those countries as well, companies that relocate could still find themselves caught
19:58in the middle of the trade dispute. For European businesses, the challenge is just as severe. The EU
20:03currently exports millions of tons of steel to the US every year. But with Trump imposing a 25%
20:09tariff on steel and aluminum imports, European steelmakers are bracing for losses. The European
20:14Steel Association has already warned that the EU could lose up to 3.7 million tons of exports as a
20:20result of the tariffs. With the industry already struggling due to rising energy costs and
20:25competition from China, this could be a major setback. And speaking of China, Beijing is watching
20:30all of this unfold with great interest. While the US and the EU are locked in an economic battle,
20:36China has been steadily strengthening its trade relationships with Europe. If the US and EU fail
20:41to reach a resolution, China could step in to fill the gap, offering European businesses new trade
20:46opportunities that don't come with the risk of tariffs. If that happens, it could lead to a
20:51long-term shift in global trade patterns, with the US losing influence in European markets while
20:56China gains a stronger foothold. The energy sector is another area feeling the effects of this trade
21:01war. The US is a major exporter of liquefied natural gas, LNG, to Europe. But with tensions
21:06rising, European leaders are now exploring alternative energy sources. If the EU decides
21:11to increase imports from other suppliers, such as Qatar or Australia, US energy companies could
21:17see a major drop in revenue. European policymakers are also discussing the possibility of investing
21:22more in renewable energy as a way to reduce reliance on US fossil fuels. If that happens,
21:27it could permanently reshape the energy trade between the US and Europe. At the same time,
21:32the technology sector is facing its own set of challenges. For years, the US and the EU have
21:37worked together on innovation, research, and cybersecurity. But those collaborations could
21:42now be at risk. Some European leaders are considering imposing stricter regulations
21:46on American tech companies in response to the tariffs, which could make it harder for US firms
21:51to do business in Europe. If that happens, companies like Apple, Google, and Intel could
21:56face new barriers in one of their most important markets. Meanwhile, financial markets are growing
22:01increasingly unstable. Investors are already nervous about the long-term effects of the trade
22:05war, with stock prices for major automakers, energy companies, and agricultural firms experiencing
22:11sharp fluctuations. If tariffs remain in place for an extended period, the risk of an economic
22:16downturn increases. Some analysts are even warning that if the situation isn't resolved soon, it
22:22could lead to a recession in both the US and Europe. As all of this unfolds, diplomatic talks
22:27are continuing behind the scenes. EU Trade Commissioner Maros Sjefcovic has made it clear
22:32that the EU is willing to negotiate, but only if the US is serious about reaching a fair agreement.
22:37At the same time, Trump's administration remains firm in its stance, arguing that the tariffs are
22:42necessary to level the playing field and protect American jobs. But the reality is that trade wars
22:48don't create winners. They create uncertainty, higher costs, and economic instability. While
22:53Trump's tariffs may be designed to bring manufacturing back to the US, the long-term
22:57consequences could be far more damaging. If American businesses struggle to compete in
23:02global markets due to trade restrictions, jobs could be lost rather than created.