Trump says he will hike tariffs on EU cars to 25%

Donald Trump has announced a decision to increase tariffs on cars and trucks imported from the European Union to 25%.

In a statement posted on Truth Social, the US President accused the EU of failing to meet the terms of their trade agreement, although he did not provide specifics on the area of non-compliance.

"I am pleased to announce that… next week I will be increasing Tariffs charged to the European Union for Cars and Trucks," Trump stated on Friday.

Currently, tariffs on goods entering the US from the EU stand at 15%, based on an agreement negotiated last July. This trade deal was established during a meeting at Trump's Turnberry golf course in Scotland, which set tariffs on most European products at 15%. This arrangement provided a temporary relief for the EU from the previously proposed 30% tariffs that Trump had threatened as part of his "Liberation Day" tariff increase in April.

In return, Europe had committed to investing in the US and implementing changes that were anticipated to enhance US exports. However, tensions escalated over President Trump's controversial threats to annex Greenland, a self-governing territory of Denmark, which led the European Parliament to suspend its approval of the agreement in January.

This suspension included a clause that allowed for the deal to be annulled if the Trump administration was found to have "undermined the objectives of the deal, discriminated against EU economic operators, threatened member states' territorial integrity, foreign and defense policies, or engaged in economic coercion." Following these disputes, the agreement received approval from the European Parliament in March.

During his announcement of the tariff increase, Trump encouraged European automotive manufacturers to relocate their production facilities to the United States. "It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF," his post read.

He emphasized that significant investments are being made in automotive manufacturing across the country, claiming these amounts represent "a record in the history of car and truck manufacturing." "There has never been anything like what is happening in America today," he added.

Furthermore, while Trump's Liberation Day tariffs that were enacted under the International Emergency Economic Powers Act (IEEPA) have been ruled illegal by the Supreme Court—resulting in firms that complied seeking refunds after the Court's ruling—the tariffs influencing car imports are governed by a separate legal framework and remain unaffected by the Supreme Court’s decision.