European Commission President Ursula von der Leyen voiced deep regret on Thursday over U.S. President Donald Trump’s decision to impose a steep 25% tariff on European car imports, effective April 2, 2025.

The move, signed into action via executive order on Wednesday, marks a significant escalation in the ongoing trade friction between the United States and the European Union, threatening to disrupt a vital economic artery for the 27-nation bloc.

Von der Leyen, in a strongly worded statement, called the tariffs “taxes—bad for businesses and worse for consumers” on both sides of the Atlantic. She highlighted the automotive industry’s role as a cornerstone of innovation and employment, with supply chains tightly woven between the U.S. and EU. “We deeply regret this measure,” she said, warning of its potential to hike prices and jeopardize jobs.

The EU exported €56 billion worth of vehicles and parts to the U.S. in 2023, making it a critical market for European manufacturers like Volkswagen, BMW, and Stellantis.

While expressing disappointment, von der Leyen signaled a dual-track response: pursuing negotiations to mitigate the fallout while vowing to “safeguard our economic interests.” The EU, she stressed, will “jointly protect our workers, businesses, and consumers.”

Analysts anticipate the bloc may retaliate with targeted levies on U.S. goods if talks falter, echoing past responses to Trump’s first-term tariffs. As Brussels assesses its next steps, the specter of a broader trade war looms, with global markets bracing for impact.