Trump to hike EU auto tariffs to 25% amid trade dispute
President Donald Trump announced on Friday a significant escalation in trade tensions, detailing plans to impose a 25% tariff on European cars and trucks entering the United States.
The President stated on Truth Social that the move comes as the European Union has failed to uphold the 2025 trade agreement. The new duties are scheduled to take effect next week.
Trump clarified that these tariffs will not apply to vehicles manufactured within U.S. borders. He highlighted over $100 billion in ongoing automotive domestic investments, describing the surge as a historic record for American industry.
The announcement arrives as the administration faces domestic pressure over the cost of living and the ongoing conflict involving Israel and Iran. This geopolitical friction has extended to NATO allies, who recently declined to support U.S. military operations or provide base access.
The 2025 trade accord was already weakened following a February Supreme Court ruling. The court previously determined the President lacked the legal authority to declare a global economic emergency to bypass existing trade caps.
Currently, tariffs on EU goods sit at 10%, down from a 15% ceiling established before the court's intervention. The Trump administration is now utilizing national security investigations to justify this new, higher tariff regime.
The European Union previously estimated that bilateral trade agreements would save European automakers approximately €500-600 million per month.
Total trade in goods and services between the two powers reached €1.7 trillion in 2024. According to Eurostat, this represents a daily exchange value of roughly €4.6 billion.
Translation by Iurie Tataru
