President Donald Trump said on Friday that the United States will increase tariffs on cars and trucks imported from the European Union to 25% starting next week, citing that the bloc has failed to comply with a previously agreed trade deal.
“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,” Trump wrote on Truth Social. “The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF.”
The United States and the European Union reached an agreement last summer, under which Washington imposed a 15% tariff on imports of European cars, pharmaceuticals, and other goods.
The president clarified that the levy would not apply to vehicles manufactured in the U.S., while heavy‑duty trucks already faced a 25% tariff.
Under the framework, both sides also committed to eliminating tariffs on certain categories of goods. However, a European official told CBS News that the European Parliament must still approve legislation to enable zero tariffs on American imports. The process has been delayed multiple times due to political challenges within Europe, as well as tensions with the United States over the future status of Greenland.
The latest action has intensified pressure on U.S.–EU trade relations, particularly in the automotive sector, where European manufacturers hold a significant share of the American market.
However, the validity of the 2025 agreement has been called into question after the U.S. Supreme Court ruled earlier this year that Trump lacked the legal authority to declare an economic emergency and impose tariffs on EU imports.
The European Commission said, “We will keep our options open to protect EU interests.”
The European automakers most likely to be affected by the tariff changes are Mercedes, BMW, and Volkswagen, as they import a substantial share of the vehicles sold in the U.S. from their production facilities in Europe.
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