President Trump auto tariffs

By Khang Mischke

Washington (dpa) — US President Donald Trump said on Friday he will raise tariffs on cars and trucks imported from the European Union to 25% starting next week, accusing the bloc of failing to comply with a trade agreement and escalating a long-running trans-Atlantic trade dispute.

“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%,” Trump wrote on his Truth Social platform.

Speaking later to reporters at the White House, Trump added: “We have a trade deal with the European Union. They were not adhering to it. So I raised the tariffs on cars and trucks.”

The president did not elaborate on how he believes the EU had failed to adhere to the terms of its deal.

He reiterated that vehicles produced by European manufacturers in the United States would be exempt, saying the tariffs are intended to push global carmakers to expand US-based production despite higher costs.

President Trump auto tariffs

On social media, he claimed that “many Automobile and Truck Plants are currently under construction, with over 100 billion dollars being invested,” which he called a record.

EU could retaliate

The EU reserves the right to take countermeasures should the US president raise US tariffs on car imports from the bloc, as announced, a spokeswoman for the European Commission made clear in Brussels this evening.

She rejected Trump’s accusation, saying the EU is implementing its commitments under the joint agreement “in line with standard legislative practice” and keeping Washington informed.

“We remain fully committed to a predictable, mutually beneficial trans-Atlantic relationship,” the spokeswoman said, adding that the bloc would “keep our options open to protect EU interests” if the United States takes measures inconsistent with the deal.

Deal hits the skids

The latest move marks a sharp escalation after months of relative calm in the dispute. In August 2025, Trump and European Commission President Ursula von der Leyen agreed on a framework capping tariffs on most EU imports, including cars and car parts, at 15%.

President Trump auto tariffs

In return, the EU pledged to scrap tariffs on US industrial goods and improve market access for agricultural products such as pork and dairy.

However, implementation has slowed amid renewed tariff threats by Trump — including in disputes linked to his bid to annex Greenland — and legal uncertainty following a US Supreme Court ruling in February that found many of his existing tariffs unlawful.

The European Parliament said in March that further implementation would be subject to strict conditions, with member states also required to approve the necessary regulations.

The agreement followed months of brinkmanship, including US threats in July to impose tariffs of up to 30% on all EU imports and EU plans for retaliatory measures worth €72 billion ($84.4 billion).

Under the current arrangement, tariffs on EU-built cars and light trucks entering the United States stand at 15%, down from 27.5% before the August 2025 deal but still far above the previous 2.5% rate. Medium and heavy trucks are generally subject to a 25% duty.

The US remains a key export market for German carmakers such as Porsche, BMW and Mercedes-Benz. Earlier tariff hikes have already hit exports hard and accelerated a shift toward producing vehicles closer to where they are sold.