US President Donald Trump said on Friday he will raise tariffs on cars and trucks imported from the European Union to 25% next week, accusing Brussels of “not complying with our fully agreed to trade deal” in a Truth Social post.
The hike, from the current 15%, sharply escalates trade tensions less than a year after the two sides struck a deal at Trump’s Turnberry golf course in Scotland that capped levies on most European goods. In exchange, the EU agreed to invest in the US and ease access for American exports.
“It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” Trump wrote, urging European carmakers to relocate production. He did not specify how the EU had failed to honour the agreement.
The European Commission said it was adhering to its commitments but was seeking “clarity” from Washington. “We remain fully committed to a predictable, mutually beneficial transatlantic relationship,” a spokesman said, adding the bloc would “keep our options open to protect EU interests.”
Bernd Lange, chair of the European Parliament’s international trade committee, called Trump’s announcement “unacceptable” and said it showed “just how unreliable the US side is.” Tensions had previously flared over US plans to adjust tariffs on steel and aluminium, where average levies now sit at 26%, as well as Trump’s threats against Greenland.
The auto tariff hike falls under a separate legal process from Trump’s Liberation Day tariffs, which the US Supreme Court has ruled illegal under the International Emergency Economic Powers Act.
Trump has also imposed 50% tariffs on countries supplying weapons to Iran. The US has frozen $344 million in Iran-linked crypto assets as part of the broader economic pressure campaign.
