US President Donald Trump on Friday announced that he will raise tariffs on cars and trucks imported from the European Union to 25 percent next week. He made the announcement in a post on Truth Social and accused the EU of failing to comply with a trade agreement with the United States.
Trump said the higher tariff would apply to vehicles entering the US from European countries. He also said companies that manufacture cars and trucks inside the United States would not face any tariff.
“I am pleased to announce that, 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 wrote.
He added, “The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in the U.S.A. Plants, there will be NO TARIFF.”
Why did President Trump announce higher tariffs?
Trump said the European Union failed to honor terms of an earlier trade understanding with the United States. He did not provide specific details about how the EU violated the agreement.
The US president also linked the tariff increase to his broader effort to expand manufacturing inside America. He argued that companies should build factories in the United States instead of exporting vehicles from Europe.
“Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing,” Trump said.
“These Plants, staffed with American Workers, will be opening soon — There has never been anything like what is happening in America today!”
Turnberry agreement
The current trade framework began with an agreement reached in July between Trump and Ursula von der Leyen. The arrangement, known as the Turnberry Agreement, placed a 15 percent tariff ceiling on most traded goods between the two sides.
Both US and Brussels earlier described the agreement as the basis for stable trade relations. However, the deal faced uncertainty after a ruling this year by the Supreme Court of the United States.
The court ruled that the president did not have the legal authority to use an economic emergency declaration to impose tariffs on European Union imports. Following the decision, the original 15 percent tariff ceiling dropped to 10 percent.
The Trump administration later introduced alternative import duties by using different legal provisions. At the same time, officials launched investigations into trade imbalances and possible national security risks linked to imports.
The administration said the reviews are part of efforts to create a revised tariff system. Analysts believe the process could eventually place the existing agreement with the European Union under further strain.
Before the latest developments, the EU estimated that the bilateral arrangement would save European carmakers between 500 million and 600 million euros every month.
According to data from Eurostat, total trade in goods and services between the European Union and the United States reached 1.7 trillion euros in 2024. That equals around 4.6 billion euros in trade every day.
In February, the European Commission repeated its support for the agreement after the court ruling.
“A deal is a deal,” the Commission said. It added that, as the United States’ largest trading partner, the European Union expects US to respect the commitments outlined in the joint statement and continue allowing EU goods to benefit from agreed tariff limits without further increases.