Trump Signals Sharp Increase in EU Auto Tariffs

Trump said the higher tariffs are intended to push European carmakers to shift production to the United States, despite an existing trade agreement with the EU. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied US President Donald Trump and NATO Secretary General Mark Rutte speak at the start of a NATO leaders summit in The Hague, Netherlands June 25, 2025. (Photo by Remko de Waal / ANP / AFP) / Netherlands OUT Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google US President Donald Trump said the United States will raise tariffs on passenger and commercial vehicles imported from the European Union to 25% beginning next week, accusing the bloc of failing to comply with a trade agreement concluded last year. Trump announced the decision in a post on his social media platform Truth Social , saying the higher tariffs would take effect next week, intended to speed up European investment in US manufacturing, European Pravda reported. Follow our coverage of the war on the @Kyivpost_official . “I am pleased to announce that, given that the European Union is not complying with our trade agreement, which we have fully agreed, next week I will raise the tolls levied on the European Union on cars and trucks imported into the United States. The tariff will be raised to 25%,” Trump wrote. He added that vehicles produced in the United States would be exempt from the tariffs. “It is fully understood and agreed that if they produce cars and trucks at factories in the United States, there will be no toll,” Trump said. Speaking later to journalists , Trump clarified that the tariffs are designed to force European automakers to accelerate construction of car factories in the United States, arguing that the policy would generate billions of dollars in revenue and shift production away from Europe. “I’ve raised tariffs on cars and trucks to 25%, that’s the billions of dollars coming into the United States, and that’s forcing them to move production from their factories much faster,” Trump said. Other Topics of Interest Su-57s Struck, New F-16 Simulators, and Potential Demobilization – Ukraine Latest, May 1 Russia’s Starlink ban, updates on Russia’s May 9 ceasefire proposal, Ukraine’s new military overhaul – updates from Ukraine and beyond Under the EU-US framework trade agreement reached in July 2025, tariffs on European automotive exports to the United States had been capped at 15%. Trump’s announcement would raise duties well above the agreed threshold. The decision comes amid tensions over the agreement’s stalled ratification in Europe. In March, the European Parliament adopted two proposals related to the trade deal, including a strengthened “safeguard clause” that would allow the EU to suspend some or all trade preferences if the United States imposes tariffs exceeding the 15% ceiling or introduces new duties on European goods, according to European Pravda. Ratification of the deal has been postponed twice in the European Parliament - first in January, in protest over Trump’s demands related to Greenland , and again in February, following fresh US tariff threats . At that time, Trump said he intended to raise general tariffs for all countries to 15%. The European Commission has not yet publicly responded to Trump’s latest announcement. Kyiv Post is Ukraine’s first and oldest English news organization since 1995. Its international market reach of 97% outside of Ukraine makes it truly Ukraine’s Global – and most reliable – Voice.