U.S. President Donald Trump on Friday said he would raise tariffs on cars and trucks imported from the European Union to 25 per cent next week, accusing the bloc of failing to comply with an existing trade agreement.
The earlier pact, reached last summer, had capped U.S. tariffs on EU automobiles and parts at 15 per cent—lower than the 25 per cent duties imposed on several other trading partners.
Announcing the move on his Truth Social platform, Trump said the increase was in response to what he described as the EU’s non-compliance with the agreement, though he did not provide specific details.
“Based on the fact the European Union is not complying with our fully agreed-to trade deal, next week I will be increasing tariffs… The Tariff will be increased to 25%,” he stated.
The development comes amid renewed tensions between Washington and European leaders, including recent criticism by Trump of German Chancellor Friedrich Merz.
Germany is expected to be significantly affected by any tariff hike, given its major role in EU auto exports to the United States.
In March, the European Parliament gave conditional approval to the EU-U.S. trade deal, backing tariff reductions on some American imports while pushing for safeguards before full implementation.
Negotiations remain ongoing, with EU trade chief Maros Sefcovic previously holding talks in Washington with U.S. officials, including Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer.
The United States is a key destination for EU vehicle exports, accounting for more than one-fifth of shipments, according to industry data, with Germany alone exporting hundreds of thousands of vehicles annually.
