U.S. carmakers are less exposed to possible retaliation because they export only 2% of their production to the EU. Still, shares of Detroit’s Ford and General Motors tumbled sharply before the opening bell in the U.S. Thursday because the U.S. industry relies heavily on cross-board trade by suppliers.

The European association of automotive suppliers (CLEPA) on Thursday called on policymakers in Europe to prioritise finding solutions over trade barriers after U.S. President Donald Trump announced 25% tariffs on foreign-made vehicles.

The US president's decision to impose car tariffs will affect Audi, Porsche, Ferrari, BMW, and Mercedes. Whether they import the entire product or assemble it in the United States using imported parts,