President Donald Trump announced Friday that the United States will raise tariffs on cars and trucks imported from the European Union to 25 percent in response to the EU’s failure to comply with a previously agreed trade deal.
The tariffs will go into effect starting next week, according to Trump.
The president also confirmed that vehicles produced in U.S.-based plants will not face the tariffs.
Trump did not disclose the exact details of how the EU was violating its trade deal.
Trump told reporters outside the White House Friday that the higher tariff would push European car makers to more quickly move their factory production to the U.S.
"We have a trade deal with the European Union. They were not adhering to it. So I raised the tariffs on cars and trucks to 25 percent, that's billions of dollars coming into the United States, and it forces them to move their factory production much faster,” Trump said.
Last July, Trump and European Commission President Ursula von der Leyen had agreed to the trade deal, which set a tariff ceiling of 15 percent on most goods. This year, however, the Supreme Court ruled that Trump exceeded his legal authority and needed congressional approval to charge that tax, specifically those imposed under the International Emergency Powers Act.
Following the court’s decision, he immediately sought alternative authorities and announced new 10 to 15 percent global tariffs.
The EU issued a statement criticizing Trump’s latest move.
"President Trump's behavior is unacceptable," Bernd Lange, the chair of the European Parliament's international trade committee, said in a statement.
"This latest move demonstrates just how unreliable the U.S. side is. We have already witnessed these arbitrary attacks from the U.S. in the case of Greenland; this is no way to treat close partners. Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position," Lange added.
According to EU statistics agency Eurostat, the value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros in 2024.