Trump to Hike Tariffs on EU Cars to 25%, Citing Trade Deal Non-Compliance

President Donald Trump has once again signaled a protectionist stance, announcing a significant hike in tariffs on European Union cars and trucks to 25 percent, effective next week. This move, communicated via his Truth Social platform, stems from Trump's assertion that the EU has not adhered to a trade deal finalized last summer. The previous agreement had capped US tariffs on EU autos and parts at 15 percent, a rate lower than the 25 percent applied to many other global partners.

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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 European Commission responded with a measured but firm tone, indicating that it would reserve the right to protect EU interests should the US implement measures that contravene their joint statement. A spokesperson emphasized that the bloc is committed to its obligations and has been keeping the Trump administration informed throughout the process. This suggests a potential for retaliatory measures, echoing past EU preparations to target US goods if trade talks faltered.

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The Tariff will be increased to 25 per cent.

The renewed threat to European automakers, particularly Germany which is a major exporter of cars and parts to the US, underscores the volatility of international trade relations under the Trump administration. Dan Anthony of "We Pay the Tariffs," a coalition of small businesses, noted the uncertainty such actions create, stating, "You never know what might trigger the next tariff threat." This development also comes amidst Trump's continued criticism of European leaders, highlighting a broader pattern of strained transatlantic economic ties.

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Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.