Leaders in both countries warned that tariffs would fan inflation in the United States and upend global supply chains.

European carmakers are trying to work out how much their prices might have to rise in response to looming U.S. import tariffs, industry sources said.

President Trump downplayed concerns that his forthcoming round of 25% tariffs on all foreign-made vehicles will cause prices on those automobiles to spike, arguing that it will be a boon for American-made autos.