Trump Announces 25% Tariffs on EU Cars and Trucks

President Trump announced an increase in tariffs on cars and trucks from the European Union to 25%, effective next week. He made the statement in a Truth Social post on Friday, arguing that the EU has not complied with the terms of a previous trade agreement.

Multiple sources confirmed the tariff hike applies specifically to automotive imports. The announcement renews trade tensions between the U.S. and the EU. Trump specified that no tariffs would apply if vehicles are produced in U.S. plants. He highlighted ongoing investments in American manufacturing, noting over $100 billion in current projects for car and truck plants.

2025, the U.S. and EU reached a trade deal imposing 15% tariffs on European products. Under the agreement, the EU committed to buying $750 billion in American energy. Days before that deal, Trump had threatened a 30% tariff on EU goods effective August 1, 2025.

“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. The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF.”

The 2025 agreement was announced jointly by Trump and European Commission President Ursula von der Leyen. Sources indicate the deal aimed to resolve prior disputes over trade imbalances.

February 20, the U.S.

Supreme Court ruled that Trump cannot levy tariffs under the International Economic Emergency Powers Act. Following the ruling, Trump announced new tariffs through alternative legal avenues on the same day. EU officials stated they would not accept increased tariffs, according to reports.

The tariff increase occurs amid the Iran war, which has led to global rises in gas prices. This has strained relations between the U.S. and several European countries. Sources noted the broader context of increased investments in U.S. automotive manufacturing, with many plants under construction.

Trump's post emphasized that new U.S. plants, staffed by American workers, will open soon. He described the investments as a record in car and truck manufacturing history. The announcement did not detail specific enforcement mechanisms beyond the tariff level.

Sources differ slightly on the framing: some described it as a threat, while others reported it as a firm announcement. No immediate EU response was detailed across the coverage. The move aligns with Trump's prior trade policies focusing on domestic production.