The U.S. will raise tariffs on European cars to 25%: Trump’s statement
1 May 22:43
U.S. President Donald Trump announced that as early as next week he will raise tariffs on cars and trucks imported from the European Union to 25%. According to him, the decision stems from the EU’s alleged failure to comply with a previously agreed trade agreement with the United States.
Trump wrote about this on his social media platform Truth Social, reports "Komersant Ukrainian"
According to Reuters, the new decision will apply specifically to cars and trucks manufactured in the EU and imported into the U.S. market. At the same time, vehicles that European companies manufacture directly in the U.S. will not be subject to the new tariffs.
What Trump said
Donald Trump accused the European Union of failing to comply with the trade agreement with the US and announced an increase in tariffs on car imports.
“I am pleased to announce that, given the fact that the EU is not adhering to our fully agreed trade agreement, next week I will raise the tariffs imposed on the EU for cars and trucks imported into the US. The tariff will be raised to 25%,” Trump said.
This refers to raising tariffs on European cars and trucks from the current level to 25% as early as next week.
Why the U.S. is raising tariffs
Trump explains the decision by claiming that the EU is allegedly not fulfilling the terms of the trade agreement with the US.
According to Reuters, the preliminary agreement called for reducing tariffs on cars to 15% in exchange for concessions from the EU regarding American industrial goods and automotive standards.
The Guardian reports that the agreement was reached in 2025 in Turnberry, Scotland, but its full ratification in Europe has been delayed. This was one of the reasons behind Trump’s latest announcement.
Who will be affected by the new tariffs
The new tariffs will apply to cars and trucks that:
- are manufactured in European Union countries;
- are imported into the U.S. market;
- are not manufactured in American factories.
At the same time, Trump specifically emphasized that the tariffs will not apply to cars manufactured directly in the United States. This means that European automakers with factories in the U.S. may partially avoid the impact on their U.S.-made models.
Why this matters for the EU
The European auto industry is one of the key sectors of the EU economy. Manufacturers from Germany are likely to be hit hardest by the tariff increases, as German brands account for a significant share of car exports to the U.S.
Euronews notes that a sharp increase in tariffs could hit Germany particularly hard, as it accounts for a significant portion of European car exports.
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How Europe reacted
In the EU, Trump’s decision is already being called a blow to trust and a breach of previous agreements. According to The Guardian, Bernd Lange, chair of the European Parliament’s Trade Committee, criticized the U.S. actions as undermining trust between the parties.
The European Commission has so far stated that it remains committed to fulfilling the agreements but reserves the right to defend the EU’s interests in the event of a further escalation of the trade conflict.
How this could affect the auto market
Raising tariffs to 25% could make European cars more expensive for American buyers. This could affect sales of European brands in the US and force companies to reconsider their production plans.
For automakers, this creates several risks:
- an increase in the final price of cars in the U.S.;
- a decline in the competitiveness of European models;
- pressure on company profitability;
- the possible relocation of some production to the U.S.;
- escalating trade tensions between Washington and Brussels.
Reuters notes that Trump’s statement has already triggered a negative market reaction: shares of major automakers, including Stellantis, Ford, and General Motors, fell following the announcement.
Why Trump is betting on U.S. manufacturing
Trump stated that the new tariffs are intended to encourage automakers to move production to the U.S. According to him, new auto plants are already being built in the United States, and investments in the industry exceed $100 billion.
In effect, the White House is using tariffs as a tool to pressure foreign manufacturers: either they pay higher import tariffs, or they localize production in the U.S.
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