Trump announces 25% US tariffs on EU cars, says bloc failed to comply with trade deal

President Donald Trump has said that he will hike US tariffs on cars and trucks from the European Union next week, charging that the bloc is not complying with an earlier trade deal.

“Based on the fact 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 Friday.

“The Tariff will be increased to 25 percent,” he wrote on his Truth Social platform.

The pact, which was struck last summer, had capped the US tariff on EU autos and parts at 15 percent, which is lower than the 25-percent duty that the Trump administration imposed on many other trading partners.

These sector-specific duties were not affected by a Supreme Court ruling earlier in the year that struck down a swath of Trump’s global levies.

Reacting to the announcement, a European Commission spokesperson told AFP news agency: “Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.”

The spokesperson added that the bloc is implementing its commitments “in line with standard legislative practice” and keeping the Trump administration updated during this process.

“President Trump’s behavior is unacceptable,” Bernd Lange, the chair of the European Parliament’s international trade committee, told Reuters news agency after the surprise tariff post.

“This latest move ‌demonstrates just how ⁠unreliable the US side is. We have already witnessed these arbitrary attacks from the US in the case of Greenland; this is no way to treat close partners. Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position,” Lange said.

“The German government and the European Commission must now finally show some backbone and stand up to Trump. Only that can prevent a continuing escalation,” said Marcel Fratzscher, president of the DIW economic institute, calling for retaliatory tariffs and taxation of US tech companies.

Last July, the EU had laid the groundwork for possible retaliation if talks with Washington fell through — preparing a list of US goods that could be targeted.

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