Trump plans to impose 25% tariffs on EU goods, particularly cars, claiming the bloc was designed to disadvantage the U.S. The EU has vowed to respond firmly, warning of economic consequences. Trump also hinted at delaying tariffs on Mexico and Canada, set for March 4, but later affirmed they remain on schedule. Analysts worry these tariffs could fuel inflation by increasing consumer prices. Some German automakers, already producing in the U.S., may be less affected, but supply chain costs will rise. Markets reacted with stocks falling, while the peso and Canadian dollar gained.