Analysts and experts fear the tariffs could be more damaging for European car makers and their suppliers than any direct tariffs on EU goods.

Donald Trump's proposed tariffs could raise car prices, impacting US and European automakers such as General Motors, Volvo, and Jaguar Land Rover.

Carmakers in the U.S. and Europe could lose up to 17 percent of their combined annual core profits in a worst-case scenario if the U.S. imposes steep tariffs on Europe and the key U.S. allies of Mexico and Canada,

On Monday, Trump announced plans to impose a 25% tariff on all goods coming from Mexico or Canada on his first day in office.