Trump ‘pleased to announce’ 25% hike on EU auto tariffs effective next week

President Donald Trump has announced he plans to increase a tariff on cars and trucks imported from the European Union effective next week, a move that could jolt the world economy at a fragile moment.

“I am pleased to announce that, 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. The tariff will be increased to 25%,” he wrote Friday.

“It is fully understood and agreed that, if they produce cars and trucks in U.S.A. plants, there will be NO TARIFF.”

Trump did not elaborate on his specific grievances over the EU and their supposed noncompliance with the trade deal.

It comes despite an agreement reached last July between Trump and European Commission President Ursula von der Leyen, which established a 15% tariff on the majority of goods.

Both the United States and the EU had previously reaffirmed their commitment to the trade framework, known as the Turnberry Agreement, named after Trump’s golf course in Scotland.

The 2025 agreement was in jeopardy earlier this year when the Supreme Court ruled that Trump lacked the legal authority to declare an economic emergency and impose tariffs on EU goods.

This ruling saw the initial 15% tariff ceiling reduced to 10%, as the Trump administration sought to implement new import taxes under different legal provisions.

The administration is currently conducting investigations into trade imbalances and national security risks, aiming to implement a new tariff regime that could ultimately place the existing agreement with the EU in jeopardy.

The EU had said it expected the bilateral deal would save European automakers about 500 million to 600 million euros ($585 million to $700 million) a month.

The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat.

Responding to the Supreme Court ruling in February, the European Commission asserted: "A deal is a deal. As the United States’ largest trading partner, the EU expects the U.S. to honor its commitments set out in the Joint Statement — just as the EU stands by its commitments.

“EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed."

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