Brussels is facing a critical decision as President Donald Trump threatens to raise tariffs on European automobile imports to 25%, a move that would hit the continent's industrial heartland. The European Union must now choose between seeking a negotiated settlement or preparing retaliatory measures that could escalate into a full-blown transatlantic trade war.
On Europe Today, Euronews correspondent Stefan Grobe reported from Washington that the White House is preparing executive action to impose the higher duties, citing national security concerns under Section 232 of the Trade Expansion Act. The move targets one of Europe's most vital export sectors, with Germany's automakers—Volkswagen, BMW, and Mercedes-Benz—particularly exposed.
EU Trade Chief Urges Restraint
EU Trade Commissioner Valdis Dombrovskis has called for dialogue, but Brussels is also preparing a list of retaliatory tariffs on US goods, as reported in EU Trade Chief Urges US to Restore 15% Tariff Cap as Tensions Rise. The European Commission has signaled it could target American agricultural products, machinery, and technology if talks fail.
Helge Berger, Deputy Director of the IMF's European Department, warned in an interview that a trade war would harm both economies. "The global economy is already fragile," Berger said. "A 25% tariff on autos would disrupt supply chains and raise prices for consumers on both sides of the Atlantic."
Catherine Ashton, former EU High Representative for Foreign Affairs, offered a more cautious perspective. "Europe must stand firm but avoid a spiral of retaliation," she told the programme. "We need to use diplomatic channels to de-escalate, but also show we are prepared to defend our interests."
Political Shifts in Romania and Slovenia
Beyond trade, the programme covered significant political developments in Eastern Europe. Euronews correspondent Andra Disconescu reported from Bucharest on Romania's new prime minister, who faces challenges including corruption allegations and a struggling healthcare system. The government must also navigate tensions with Brussels over rule-of-law reforms.
In Ljubljana, journalist Alja Pengov Bitenc provided an update on Slovenia's new government, which took office after months of coalition negotiations. The administration, led by Prime Minister Robert Golob, has pledged to tackle inflation and strengthen environmental protections, but faces a fragmented parliament.
Rubio's Vatican Visit Amid Strained Relations
Jakub Janas contributed an explainer on US Secretary of State Marco Rubio's visit to the Vatican, which comes as Trump Escalates Feud with Pope Leo XIV Ahead of Rubio's Vatican Visit. The trip aims to repair ties after Trump's public criticism of the Pope's stance on migration and climate change. Rubio is expected to meet with Vatican Secretary of State Cardinal Pietro Parolin to discuss humanitarian cooperation and global security.
The broader context includes rising tensions in the Middle East, with Iran Threatens European Military Bases as Hormuz Crisis Deepens, adding pressure on European capitals to coordinate a unified response.
As the EU weighs its options, the outcome will shape not only trade relations but also the bloc's strategic autonomy. With German Chancellor Olaf Scholz and French President Emmanuel Macron under domestic pressure, the tariff threat could test the unity of the twenty-seven member states. The next few weeks will be crucial in determining whether Europe chooses appeasement or retaliation.
