Trump Says US to Raise Tariffs on EU Cars to 25% Over Compliance Dispute

Mintesinot Niggusie

U.S. President Donald Trump said on Friday that Washington will increase tariffs on cars and trucks imported from the European Union to 25 percent next week, escalating a dispute over a 2025 trade agreement that had capped duties at 15 percent.

The announcement signals a renewed strain in transatlantic trade ties, with the United States arguing that the European Union has not fulfilled commitments under the deal, while European officials say implementation is still under way.

"Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing tariffs charged to the European Union for cars and trucks coming into the United States," Trump said in a social media post.

He added that vehicles manufactured within the United States would be exempt. "It is fully understood and agreed that, if they produce cars and trucks in U.S.A. plants, there will be no tariff," he said.

Speaking at the White House, Trump said the measure would generate "billions of dollars" in revenue and accelerate the relocation of production. "It forces them to move their factory production much faster," he said.

The 2025 agreement between Washington and Brussels had set a 15 percent ceiling on tariffs and included commitments by the European Union to reduce duties on U.S. goods and align with certain regulatory standards. The current dispute centres on delays in implementing those provisions.

European officials have rejected the claim of non-compliance and indicated they are prepared to defend the bloc's economic interests, raising the possibility of retaliatory measures.

The move has already weighed on shares of major European automakers and could disrupt supply chains, with some manufacturers having already expanded production capacity in the United States in response to earlier tariff pressures.

The policy also faces legal uncertainty. A recent ruling by the U.S. Supreme Court questioned aspects of tariff authority, while the administration is expected to rely on national security provisions to justify the increase.