Trump Announces 25% Tariff on EU Car Imports

US President Donald Trump has said he will raise tariffs on cars and trucks imported from the European Union to 25%, intensifying trade tensions between Washington and Brussels. The announcement was made in a post on the social media platform Truth Social on Friday.

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Trump said the increase would take effect next week, accusing the EU of failing to comply with a previously agreed trade arrangement, though he did not specify how the bloc had breached the deal.

“I am pleased to announce that… next week I will be increasing tariffs charged to the European Union for cars and trucks,” the president wrote.

The European Commission responded by saying the EU was continuing to implement the agreement and was seeking clarification from Washington about its claims.

Officials added that the bloc would “keep its options open” to defend European economic interests if the United States takes steps inconsistent with the agreement.

Automotive sector targeted

Trump’s decision focuses on the automotive industry, a sector that plays a major role in the economies of several EU member states.

European carmakers export large numbers of vehicles to the United States each year, making the sector particularly sensitive to trade policy changes.

In his statement, Trump urged European manufacturers to relocate production to the United States in order to avoid the tariffs.

“It is fully understood and agreed that, if they produce cars and trucks in U.S.A. plants, there will be no tariff,” he wrote.

The president also said billions of dollars were being invested in American car and truck factories, describing the level of investment as unprecedented in the country’s automotive industry.

Trade deal tensions

The latest move comes less than a year after the US and EU reached a trade agreement during talks held at Trump’s Turnberry golf resort in Scotland.

That deal set tariffs on most European goods at 15%, reducing the risk of the 30% tariffs Trump had previously threatened as part of his broader “Liberation Day” tariff policy.

In return, European leaders agreed to increase investment in the United States and take steps intended to boost American exports.

However, relations between the two sides deteriorated in the months that followed.

Disputes intensified after Trump suggested the United States should annex Greenland, a self-governing territory belonging to Denmark. The controversy led the European Parliament to temporarily suspend approval of the trade agreement earlier this year.

The parliament eventually approved the deal in March, but added a clause allowing the agreement to be suspended if Washington undermined its objectives, discriminated against EU businesses, or applied economic pressure on member states.

European reaction

The European Commission said the EU had been implementing the agreement according to normal legislative procedures while keeping US officials informed.

A commission spokesperson said the bloc remained committed to a stable and mutually beneficial transatlantic relationship but would respond if necessary.

Bernd Lange, chair of the European Parliament’s international trade committee, criticised the US announcement and questioned Washington’s reliability as a trading partner.

He said lawmakers were still working on legislation required to implement the deal fully and expected to finalise it by June.

Lange acknowledged that implementation had been paused earlier due to tensions over Greenland and legal developments in the United States, but he argued that Washington had already breached the agreement in other areas, including tariffs affecting goods containing steel and aluminium.

Legal backdrop

Trump’s earlier “Liberation Day” tariffs were imposed using emergency powers under the International Emergency Economic Powers Act. Those measures were later ruled unlawful by the Supreme Court of the United States, prompting companies that had paid the tariffs to seek refunds.

However, the proposed tariffs on cars fall under a different legal mechanism and are not affected by that ruling.

Trade specialists say the EU is likely to examine the legal details of Trump’s announcement before deciding whether to retaliate.

Professor Simon Evenett of the IMD Business School said policymakers in Brussels would want to see the official legal measures behind the announcement before responding.

He added that critics who believe the US administration struggles to maintain trade agreements would view the latest development as further evidence of that concern.

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Adapted by ASEAN Now. Source 2 May 2026