The levies could hurt European automakers when the industry is already struggling, especially in Germany, Europe’s biggest economy.

Investors are calling time on a rally in European stocks and the euro after a blistering first quarter that many fear has exaggerated how fast a planned public spending boom can revive the region's still sluggish economy and shore it up against trade war risks.

The new 25% import tax “will hurt global automakers and U.S. manufacturing at the same time," the European Automobile Manufacturers' association said.