Trump threatens 25% EU car tariffs, accuses bloc of 'not complying' with trade deal

Prefer on Google by Tim Zadorozhnyy US President Donald Trump in Brussels, on May 25, 2017. (Thierry Charlier/AFP via Getty Images) Washington will impose 25% tariffs on cars and trucks from the European Union starting next week, except for those produced in U.S. plants, U.S. President Donald Trump said on May 1. The announcement marks an escalation in trade tensions, with Trump accusing the EU of failing to comply with a previously agreed trade deal between the two sides. "Based on the fact (that) 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 said 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 U.S. president added. Under the deal, the EU agreed to eliminate tariffs on U.S. industrial goods in exchange for a 15% cap on duties for most EU exports. EU lawmakers have yet to fully ratify the agreement, as they continue to push for additional amendments. Trump and European Commission President Ursula von der Leyen agreed on the framework during a meeting on July 27. The deal lowered planned U.S. tariffs on most EU exports to 15%. The renewed tariff threat reflects Trump's broader push to reshape U.S. trade relations. During the 2024 presidential campaign, he pledged to impose tariffs on key trading partners.