Trump Announces 25% Tariffs on EU Cars and Trucks

President Trump announced an increase in tariffs on cars and trucks imported from the European Union to 25%, escalating trade tensions. The move targets the automotive sector, which forms a significant part of Europe's economy. The announcement was made via a post on Truth Social and confirmed to reporters.

The tariff hike comes less than a year after a deal set levies on most European goods at 15%. That agreement was reached at Trump's Turnberry golf course in Scotland, averting threatened 30% tariffs under the 'Liberation Day' plan. In exchange, Europe agreed to invest in the US and adjust policies to boost US exports.

Tensions have risen over issues including US threats to annex Greenland, a self-governing Danish territory, leading the European Parliament to suspend approval of the deal in January. The deal was approved in March with a clause allowing suspension if the US undermines objectives, discriminates against EU operators, threatens territorial integrity, or engages in economic coercion.

Further disputes involve steel and aluminium tariffs, where major European economies like Germany and France rejected US adjustment plans. Products containing steel and aluminium now face average tariffs of 26%, according to Bernd Lange, chair of the European Parliament's international trade committee.

>"This latest move demonstrates just how unreliable the US side is. It seeks clarity on US commitments and will keep options open to protect EU interests if inconsistent measures are taken. Bernd Lange told the BBC that Trump's behavior is unacceptable and dismissed arguments of EU non-fulfillment.

He noted the European Parliament is drafting necessary legislation to finalize by June, despite pauses due to US pressure over Greenland and a US Supreme Court decision. President Trump urged European carmakers to shift production to the US to avoid tariffs, stating that billions of dollars are being invested in US plants, described as a record in car and truck manufacturing history.

Simon Evenett, a trade expert at the IMD Business School, told the BBC that the announcement vindicates views of the US administration's inability to stick to deals, though social media posts are not law, and Brussels will await fine print before responding.

France 24 reported the tariff hike could cost Germany $18 billion, highlighting the automotive sector's importance to the EU economy. The move follows US withdrawal of troops from Germany, further escalating disputes. >"Those who reckon that this [US] Administration can't stick to any deal will feel vindicated.

" — Simon Evenett, trade expert at the IMD Business School (BBC News) The tariffs on cars fall under a different legal process than the Liberation Day tariffs, which were ruled illegal by the Supreme Court, with firms seeking refunds. This hike is not impacted by that ruling.

Bernd Lange pointed to repeated US breaches, including the steel and aluminium tariffs, and called the US an unreliable trading partner.