Trump to Raise EU Car Tariffs to 25% Amid Trade Dispute

On Friday, President Donald Trump declared that the United States would raise tariffs on cars and trucks imported from the European Union to 25%, effective next week. This decision stems from the EU's failure to fully comply with a trade agreement made last summer, which capped U.S. tariffs on EU auto parts at 15%.

Trump expressed that the EU's non-compliance justified the tariff hike, which will be announced on his Truth Social platform. A spokesperson for the European Commission responded, stating that the U.S. measures contradict a joint statement and that the EU would consider protecting its interests.

The EU had previously laid the groundwork for potential retaliatory actions against U.S. goods. In March, the European Parliament approved a tariff deal contingent on the EU reducing tariffs on U.S. imports.

The automotive sector is particularly concerned, with Dan Anthony, head of the Tariff Coalition, noting that nearly 1,200 small businesses could be affected by this new tariff threat.