Trump to raise tariffs on cars, trucks from EU to 25%

US President Donald Trump on Friday announced he was hiking US tariffs on cars and trucks from the European Union next week to 25%.

He accused the bloc of not complying with the terms of a trade agreement with the US, without citing specifics.

The EU agreed to erase any tariffs on US imports in exchange for a 15% tariff on most EU products when it struck a trade agreement with the US last year, averting a bigger trade war.

EU lawmakers advanced the legislation this March to implement the tariff reductions, but the process is not expected to be completed before June as EU governments and the European Parliament negotiate final texts.

What did Trump say?

"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 wrote on Truth Social.

"The Tariff will be increased to 25%."

Trump added that there will be no levies on cars and trucks built in US plants. 

Can Trump raise levies?

It's not clear what authority Trump can use to raise taxes on the EU.

The US Supreme Court earlier this year said Trump exceeded his authority by using federal emergency-powers law to unilaterally impose his "reciprocal" tariffs on countries across the globe.

'No way to treat partners,' says EU lawmaker

EU Parliament's trade committee chair, Bernd Lange, said the latest tariff move "demonstrates just how unreliable the US side is." 

"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 that Trump's behavior is "unacceptable" and said the EU was honoring the trade agreement with the US.

German auto industry association calls for de-escalation

Hildegard Müller, the president of the German Association of the Automotive Industry (VDA), told DW that the latest tariff push "represents a renewed and serious strain on transatlantic relations."

"The costs resulting from these additional tariffs would be enormous for the German and European automotive industry at a time that is already extremely challenging, and would likely also have an impact on consumers in the United States."

"The trade agreement concluded between the EU and the US must be honored by both sides," he said. "The automotive industry urgently calls on both sides to de-escalate and to enter into swift negotiations.”

Edited by: Dmytro Hubenko