Trump Increases EU Car and Truck Tariffs
US President Donald Trump announced he is rescinding part of the tariff agreement made with European Union leaders last summer at his golf course in Scotland. He criticized the EU for delays in ratifying the deal and declared an increase in tariffs on cars and lorries imported from the EU into the US, raising the rate from 15% to 25% effective next week.
Trump specified that vehicles manufactured in the US by EU companies would be exempt from this tariff hike. He communicated this update via his social media platform, Truth Social.
“I am pleased to announce that, based on the fact the is not complying with our full 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.
In a subsequent statement, Trump appeared to reference EU commitments to investment, stating that numerous automobile and truck plants are under construction with $100 billion being invested—a record amount in the history of car and truck manufacturing. He added that these plants, staffed by American workers, will be opening soon.
“Many automobile and truck plants are currently under construction with 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing. These Plants, staffed with American Workers will be Opening Soon.”
EU Response and Trade Deal Status
Bernd Lange, chair of the European Parliament’s international trade committee and a German MEP, responded promptly to Trump’s announcement, expressing that it demonstrated the US’s unreliability.
“This is no way to treat close partners,” Lange said. “Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position.”
Although the European Parliament voted at the end of March to advance the trade deal, it has yet to be formally ratified through the trilogue process, which requires signatures from the European Commission, the European Council of EU leaders, and the Parliament.
The EU is expected to initiate an intensive diplomatic effort to salvage the agreement. The European Commission did not provide a direct comment on the tariff increase but reaffirmed its commitment to the deal signed last year and stated it would keep its options open to protect EU interests.
“We remain fully committed to a predictable, mutually beneficial transatlantic relationship. Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.”
Context of US Troop Deployment and Recent EU-US Engagements
This tariff development coincides with ongoing tensions regarding US troop deployments in Europe. Just a day prior, Trump indicated he was considering reducing the number of US troops stationed in Germany. When asked if he might withdraw troops from Italy and Spain, he responded:
“Probably … look, why shouldn’t I? Italy has not been of any help to us and Spain has been horrible, absolutely horrible.”
Trump’s tariff announcement follows a recent visit by European Commission Vice-President Maroš Šefčovič to Washington. During his three-day trip, Šefčovič met with senior members of Trump’s administration, including Commerce Secretary Howard Lutnick, US Trade Representative Jamieson Greer, and Treasury Secretary Scott Bessent. This was Šefčovič’s first visit since the EU-US tariff deal was signed in July.
The announcement also comes weeks after the European Parliament voted to ratify the deal, having previously paused the formal process twice. The first suspension occurred in January as a protest against Trump’s threat to purchase Greenland from Denmark, and the second in February following an adverse US Supreme Court ruling.
Legal and Historical Background of the Tariff Deal
Although the 15% tariff deal was ruled illegal by the US Supreme Court earlier this year, the tax on cars remains in effect under separate legislation known as Section 232 of the Trade Expansion Act.
The Turnberry agreement in Scotland established a 15% tariff on most goods imported from the EU, including cars, which previously faced tariffs of 50% on exports to the US.
Following significant lobbying from the EU, German car manufacturers, and statements from German Chancellor Friedrich Merz, Trump agreed to include cars in the 15% baseline all-inclusive tariff rate. However, 50% tariffs on steel imports continued. In exchange, the EU committed to purchasing $750 billion of energy from the US and making $600 billion in investments in the US.
A spokesperson for the European Commission stated:
“The EU is implementing its joint statement commitments in line with standard legislative practice, keeping the US administration fully informed throughout. We maintain close contact with our counterparts, including as we also seek clarity on US commitments.
“We remain fully committed to a predictable, mutually beneficial transatlantic relationship. Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.”
