President Trump's recent decision to impose tariffs on European Union goods could have a significant impact on the global economy. The move, which comes in response to ongoing trade disputes, has sparked concerns among economists and investors alike.

Stocks surged initially following the announcement, with some seeing the tariffs as a potentially positive move for American industries. However, experts warn that the long-term effects could be detrimental to both the US and its trading partners.

The auto industry is expected to be particularly hard hit by the tariffs, with prices of cars and other vehicles likely to increase significantly. This could lead to decreased consumer demand and reduced profits for manufacturers.

Critics argue that Trump's tariffs are a misguided effort to protect American jobs, and may ultimately backfire by harming the very industries they are meant to support. As negotiations continue, the global economy hangs in the balance, with the potential for far-reaching consequences.