Washington, D.C.: Donald Trump has announced a sharp increase in tariffs on automobile imports from the European Union, accusing the bloc of failing to uphold its commitments under a previously negotiated trade agreement with the United States.
In a social media post on Friday, Trump said tariffs on cars and trucks imported from the EU would be raised to 25%, signalling a fresh escalation in transatlantic trade tensions.
“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,” he wrote. “The tariff will be increased to 25%.”
Exemption for US-Based Manufacturing
The US President clarified that the higher tariffs would not apply to vehicles manufactured within the United States. He reiterated that companies producing cars and trucks in American facilities would be exempt from the levy.
“It is fully understood and agreed that, if they produce cars and trucks in U.S.A. plants, there will be no tariff,” Trump said, encouraging foreign automakers to expand domestic manufacturing operations.
Trade Deal Under Strain
The move comes despite an existing transatlantic trade framework under which the EU had agreed to eliminate tariffs on US industrial goods. In return, the United States had set a 15% tariff ceiling on most European exports.
However, the agreement has faced ongoing challenges since its inception, with both sides expressing concerns over compliance and implementation.
Trump’s latest announcement suggests growing frustration within his administration and raises the possibility of further trade friction between Washington and Brussels.