text: President Donald Trump threatened to hit car exports from the European Union with a retaliatory tax, escalating a brewing global fight with U.S. trading partners triggered by newly announced 25 percent U.S. tariffs on imported steel and aluminum. 
   
   In a post on Twitter, Trump cited a "big imbalance" between the two countries, said if the 28-nation bloc insisted on imposing punitive taxes on U.S. goods, America would strike back on European car exports. It was an apparent response to European officials threatening policy changes of their own in the wake of Trump's sudden pronouncement on metal imports. 
   
   "If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a tax on their cars which freely pour into the U.S.," the president said on Twitter. 
   
   That could spell trouble for car manufacturers like Volkswagen and BMW, two of the most popular European brands sold in the U.S. The German luxury car maker also manufactures many of its cars in America, shipping billions of dollars worth abroad. 
   
   In 2016, the EU shipped more than 6 million cars abroad, and the U.S. — its largest market by far — absorbed more than 1 million of those, according to the European Automobile Manufacturers Association. 
   
   Each year, the U.S. imports more from Europe than the continent absorbs in American goods, to the tune of a trade deficit totaling more than $151 billion in 2017, according to U.S. Census data. 
   
   Trump's hasty decision to impose tariffs on steel imports has stoked talk of a brewing trade war, roiling both the political establishment and the global economic order. The move also prompted E.U. trade chiefs to weigh hitting a broad array of U.S. imports with a 25 percent tax, Reuters reported this week. 
   
   ||||| CLOSE President Donald Trump said trade wars were "good," expressing defiance amid global criticism of his plan to slap tariffs on steel and aluminum imports. Newslook 
   
   President Donald Trump and first lady Melania Trump. (Photo: Chuck Burton, AP) 
   
   In the first rumblings of a potential trade war, President Trump punched back Saturday at Canadian and European warnings that his steel tariff plan is "unacceptable" by threatening to slap a tariff on European cars if they try to take him on. 
   
   The latest volley out of Mar-a-Lago came two days after Trump first announced plans to impose a U.S. tariff of 25% on steel imports and 10% on aluminum. 
   
   That, in turn, was met by a sharp rejection from Canadian Prime Minister Justin Trudeau who called the tariffs "absolutely unacceptable" and said they would cause serious disruption of markets on both sides of the border. 
   
   If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S. They make it impossible for our cars (and more) to sell there. Big trade imbalance! — Donald J. Trump (@realDonaldTrump) March 3, 2018 
   
   His foreign minister, Chrystia Freeland, warns that Canada is prepared to "take responsive measures to defend its trade interests and workers," Reuters reports. 
   
   European leaders also weighed in. Jean-Claude Juncker, president of the European Commission, told the German media that the EU would respond with tariffs on such U.S. products as Harley-Davidsons, Kentucky bourbon and bluejeans. 
   
   “None of this is reasonable, but reason is a sentiment that is very unevenly distributed in this world,” Juncker said. 
   
   From his weekend perch, Trump made it clear that such talk would only stoke American resolve. 
   
   "If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S.," he tweeted. "They make it impossible for our cars (and more) to sell there. Big trade imbalance!" 
   
   The tweet underscored his observation on Friday that when the U.S.is losing "many billions" on trade with virtually every trading partner "trade wars are good and easy to win." 
   
   Dieter Kempf, head of the Federation of German Industries, warns that Trump was risking a “spiral of protectionism” that in the end would cost American jobs, as well as those in Germany and the rest of Europe, The New York Times reported. 
   
   For now, Canada was feeling the most acute pressure as the top supplier to the United States of both steel and aluminum, exporting nearly 90% of its steel to the U.S. 
   
   "Any disruption to this integrated market would be significant and serious, Trudeau said. 
   
   Prime Minister Justin Trudeau stands during question period on Parliament Hill in Ottawa on Feb. 28, 2018. (Photo: Sean Kilpatrick, AP) 
   
   These proposals, he added, "are going to hurt them every bit as much as they are going to hurt us, and we are confident we're going to continue to be able to defend Canadian industry." 
   
   While Trump has routinely singled out China for its steel and aluminum exports to the U.S., the president, in his off-the-cuff remarks on Thursday, did not say specifically whether Canada and/or Mexico would be subject to the new measures. 
   
   If he aims only at China, however, he would hit a mighty small target since China accounts for only 2.9% of U.S. steel imports. 
   
   Canada, on the other hand, is the biggest supplier, accounting for 16% of U.S. steel imports, or $4.3 billion in 2017, followed by South Korea, Mexico, Brazil and China, according to data compiled by Wood Mackenzie. 
   
   The Wall Street Journal, quoting an unidentified senior White House official, reports that Trump plans to apply his tariffs globally and won't exempt allies such as Canada and Europe. 
   
   That is hardly surprising, given Trump's ire in the past over Canada's export policies. 
   
   Last year, in a flareup over milk pricing and softwood lumber, the president took a swipe at the neighbors to the north, warning people not to be fooled by Canadians' friendly demeanor, the The Globe and Mail reported. 
   
   "Canada's been very rough on the United States. Everyone thinks of Canada as being wonderful, and so do I, I love Canada," he said. "But they've outsmarted our politicians for many years." 
   
   
   
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target: – A full-blown trade war is looking ever more likely with President Trump threatening US allies upset with the tariffs on steel and aluminum imports he announced just days earlier, USA Today reports. "If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S. They make it impossible for our cars (and more) to sell there. Big trade imbalance!" Trump tweeted Saturday from Mar-a-Lago. The president announced a 25% tariff on imported steel and 10% tariff on imported aluminum on Thursday. Both Canada and the EU called the tariffs "unacceptable," and the EU threatened to retaliate in the form of tariffs on Harley-Davidson motorcycles, Kentucky bourbon, and jeans. Canada also threatened retaliation of its own. The US was the largest market for cars exported from the EU in 2016, importing over 1 million, CNBC reports. According to the Washington Post, Trump's newest tariff threat mostly targets Germany, which exported $23 billion in cars to the US in 2016. Germany's BMW and Volkswagen employ thousands of workers in factories in the US, and critics say a tariff on their cars would only hurt US consumers. Trump said during his presidential campaign that he wanted to fix trade imbalances with China and Mexico. But his announced tariffs on aluminum and steel would mostly affect Canada, the UK, Germany, South Korea, Turkey, and Japan—all allies of the US. “None of this is reasonable, but reason is a sentiment that is very unevenly distributed in this world,” the president of the EU says. Trump on Friday called trade wars "good and easy to win."