Trump escalates trade war, threatens EU and Canada with higher tariffs.

The U.S. president warns Brussels and Ottawa against collaborating against America, threatening serious consequences.

U.S. President Donald Trump warned Thursday of imposing even higher tariffs on the European Union and Canada if they collaborate to harm the U.S. economy.

“This is the beginning of Liberation Day in America,” Trump said at the White House, even though the measures are likely to drive up vehicle prices. “We’re going to take back just some of the money that has been taken from us,” he added.

The tariffs, set to take effect on April 3, present a major risk to the European car industry and mark the sharpest escalation yet in Trump’s trade war, with experts warning of serious global economic repercussions.

In reaction, European Commission President Ursula von der Leyen voiced deep “regret” over the U.S. decision and pledged to safeguard European businesses.

“The EU will continue to seek negotiated solutions, while safeguarding its economic interests,” she said in a statement. “As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses, and consumers across our European Union.”