President Donald Trump said on Friday that tariffs on cars and trucks imported from the European Union will rise to 25% next week, warning that the EU “is not complying with our fully agreed to Trade Deal.”
Trump Says US Will Raise EU Vehicle Tariffs To 25%
Trump made the announcement on social media but did not specify which parts of the agreement had been violated.
The move comes despite last July’s trade deal between Trump and European Commission President Ursula von der Leyen, which had placed a 15% tariff ceiling on most goods under the Turnberry Agreement.
Earlier this year, the Supreme Court ruled against the legal authority Trump had used for those tariffs, forcing his administration to rely on substitute powers. A temporary 10% tax remains in place while officials investigate trade imbalances and national security concerns to support a revised tariff structure.
The tariff escalation comes during a fragile global economic period, with the Iran war damaging growth expectations and pushing inflation fears higher as oil and natural gas prices surged following disruption around the Strait of Hormuz.
