Fighting continues in Ukraine's east.

President Donald Trump threatens to impose even higher tariffs on the EU and Canada

President Donald Trump early on Thursday threatened even higher tariffs on the European Union and Canada if the two economies jointly engage in 'economic wrongdoing against the U.S.'

Negative reaction from European car manufacturers

This publication appeared after the president announced on Wednesday that he would impose a 25% tariff on all imported cars.

In response, the European Automobile Manufacturers Association (ACEA) issued a statement on Thursday expressing that it is 'deeply concerned' about Trump's announcement of additional tariffs.

'European car manufacturers have invested in the U.S. for decades, creating jobs, contributing to economic growth in local communities, and generating substantial tax revenue for the U.S. government,' said ACEA General Director Sigrid de Vries in a statement. 'We urge President Trump to consider the negative impact of tariffs not only on global car manufacturers but also on domestic production in the U.S.'

Trump's protectionist tariffs are fueling a trade war

President Trump sees tariffs as a way to generate tax revenues to fund his tax cut plans while also stimulating a revival of domestic manufacturing.

But the president's broad tariffs have deepened the trade war with U.S. allies, particularly Canada, Mexico, and the EU.

Earlier this month, Canada, the largest foreign supplier of steel and aluminum to the U.S., announced additional tariffs amounting to $21 billion in response to Trump's 25% tariffs on both products.

This also triggered a retaliatory response from the EU, which announced retaliatory tariffs affecting U.S. exports worth $28 billion.