Washington — President Donald Trump announced on Friday that he will increase U.S. tariffs on cars and trucks imported from the European Union next week, accusing the bloc of failing to adhere to a previous trade agreement.
اضافة اعلان
Escalation of Trade Tensions
Under an agreement reached last summer, U.S. tariffs on European vehicles and parts were capped at 15%, a lower rate than the 25% duties Trump imposed on many other trading partners. These specific sector-targeted tariffs are not covered by a Supreme Court ruling earlier this year that invalidated a significant portion of the President's previous tariff hikes.
Writing on his platform, Truth Social, Trump stated: "Based on the European Union not adhering to the fully agreed-upon Trade Agreement, I will next week be raising the Tariffs on EU Cars and Trucks imported into the United States. The Tariffs will be raised to 25%."
Geopolitical Context
While the President did not provide further specific reasons for the planned increase, the announcement follows his renewed criticism of German Chancellor Friedrich Merz. Trump recently told Merz that he should focus on ending the war in Ukraine rather than "interfering" in Iranian affairs.
Impact on the European Market
Germany is expected to be the most heavily affected by any sharp rise in automotive duties, given its dominant share of EU vehicle exports. According to the German Association of the Automotive Industry (VDA), Germany exported approximately 450,000 vehicles to the U.S. in 2024, though that number has been declining since.
The State of Negotiations
In late March, EU lawmakers granted conditional approval for the tariff agreement with Trump. While many agreed to lower EU duties on certain U.S. imports as a first step toward implementing the 2025 deal, they sought additional guarantees.
In April, EU Trade Commissioner Maroš Šefčovič visited Washington for talks with officials, including U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jameson Greer. At the time, Šefčovič noted that the EU was seeking further progress on reducing hefty U.S. steel tariffs, describing the negotiation trajectory as positive.
The United States remains the second-largest market for new car exports from the EU after the United Kingdom, accounting for more than 20% of the bloc's total automotive exports.
(Source: AFP)
