U.S. to Increase Tariffs on EU Cars and Trucks from 15% to 25% Over Trade Deal Dispute
President Trump announced an increase in tariffs on cars and lorries imported from the European Union to 25% from 15%, citing non-compliance with a trade deal reached last year. The move exempts vehicles made in the U.S. by EU companies and follows recent diplomatic tensions. EU officials expressed commitment to the relationship but readiness to protect interests.
U.S. from the EU from 15% to 25% starting next week, citing the European Union's failure to comply with a trade deal reached last year. S.
By EU companies would be exempt from the tariff increase. In a follow-up comment on the platform, Trump added: 'many automobile and truck plants are currently under construction with 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing.
He stated that he is tearing up part of the tariff deal he struck with EU leaders at his golf course in Scotland last summer, criticizing Brussels for taking so long to ratify the deal.
While 50% tariffs on steel continued after the deal. S. S. The deal reduced tariffs on EU cars to 15% from a proposed 50%.
Last year, President Trump imposed a 25 percent tariff on global automotive imports under Section 232 of the Trade Expansion Act, citing national security risks, before reaching the August deal with the EU to lower those levies to 15 percent. S. Trade Representative Jamieson Greer told CNBC on Monday that the White House is moving forward with the tariff action.
U.S. says it will hike tariffs to 25% because the EU has not complied with the trade deal last year that set tariffs at 15%. S. president announced his intention to raise tariffs to 25% on European cars and trucks.
U.S. trade negotiators will meet today in an effort to address the tensions. An EU official told Euractiv that the bloc was committed to the relationship but prepared to protect its own interests if Trump followed through.
A European Commission spokesperson said: 'The EU is implementing its joint statement commitments in line with standard legislative practice, keeping the US administration fully informed throughout. We maintain close contact with our counterparts, including as we also seek clarity on US commitments. We remain fully committed to a predictable, mutually beneficial transatlantic relationship.
The German MEP Bernd Lange said: 'This latest move demonstrates just how unreliable the US side is. This is no way to treat close partners. Although the European parliament voted at the end of March to progress the deal and voted weeks before the announcement to ratify it, the deal has not been formally signed off in the trilogue process involving the European Commission, the European Council, and the parliament.
U.S. supreme court ruling. S.
Supreme Court ruled earlier this year that the 15% tariff deal was illegal and that President Donald Trump could not impose his global tariffs through the International Emergency Economic Powers Act (IEEPA). S.
Trade representative Jamieson Greer, and treasury secretary Scott Bessent. S. tariff deal was signed. S.
U.S. troops deployed in Germany. He told reporters late on Thursday: 'Probably … look, why shouldn’t I?
The White House announced plans on Friday to withdraw 5,000 troops from Germany. S. was being humiliated in negotiations with Iran and criticized the Iran war last week.
Merz has since taken a more emollient tone. Transatlantic tensions are high amid these events. S. S. S.
Global car imports by value coming from the EU, according to the European Automobile Manufacturers’ Association (ACEA). S. S.
U.S. household for this year. A Harris Poll in March found that 72 percent of Americans said that tariffs had a negative impact on their lives.
A Pew Research Center poll in April found that 63 percent of Americans are not confident in Trump’s handling of tariff policy. S. industries and trade groups are split over President Trump's tariff probe on excess factory capacity.
Malaysia becomes the first country to cancel its tariff deal with the White House.
Key Facts
Story Timeline
6 events- 2026-05-05
EU and US trade negotiators meet today
1 sourceSemafor - 2026-05-01
President Trump announces intention to raise tariffs to 25% on European cars and trucks
1 sourceLe Monde - 2026-04-28
White House announces plans to withdraw 5,000 troops from Germany
1 sourceWhite House - 2026-03
European parliament votes to progress the deal
1 sourceThe Guardian - 2026-02
Parliament pauses voting procedure following US supreme court ruling
1 sourceThe Guardian - 2025-08
White House reaches deal with EU to lower tariffs to 15%
1 sourceAl Jazeera
Potential Impact
- 01
Higher costs for US consumers on EU-imported luxury vehicles
- 02
Potential EU retaliation affecting US exports
- 03
Strain on transatlantic defense ties due to troop withdrawal threats
- 04
Shifts in automotive production, like Porsche considering US expansion
- 05
Broader trade deal cancellations, as seen with Malaysia
Transparency Panel
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