Trump to lift EU auto tariffs to 25% as trade tensions deepen
Trump says EU cars and trucks will face 25% tariffs next week, accusing Brussels of failing to honour its trade deal with Washington
US President Donald Trump said on Friday (May 1) that he would raise tariffs on cars and trucks imported from the European Union to 25% next week, accusing the bloc of failing to carry out its trade commitments with Washington.
The planned increase would replace the previously agreed 15% tariff level under a US-EU trade arrangement reached last year. Trump said vehicles made by European companies in US plants would not be subject to the tariff.
Speaking at the White House, Trump said the higher duties would bring “billions of dollars” into the United States and push European automakers to shift production to US factories more quickly.
The European Commission rejected Trump’s accusation, saying Brussels was not in breach of the trade deal and would keep all options open if Washington violated the agreement.
The move drew criticism from European politicians and trade groups, who warned that the tariff threat could further strain relations between the two sides. Bernd Lange, chair of the European Parliament’s international trade committee, called Trump’s move unacceptable and said Europe should respond firmly.
The dispute comes amid wider tension between Washington and Brussels over the Iran war and Europe’s refusal to send naval forces to reopen the Strait of Hormuz.
Under last year’s agreement, the Trump administration had lowered automotive tariffs on EU imports to a net 15%, after previously imposing a 25% levy on global auto imports under national security trade rules.
In return, the EU agreed to remove duties on US industrial goods, including vehicles, and accept US safety and emissions standards. However, implementation in Europe has moved slowly, with EU legislation still going through the approval process.
The tariff announcement hit automaker shares. Ford, Stellantis and General Motors all fell after Trump’s remarks.
European carmakers already have major US operations, while some are planning further investment. Mercedes-Benz has said it will invest US$4 billion in its Alabama plant through 2030 as part of a wider US investment plan.
Trade experts warned that the latest move could intensify friction between the US and EU, particularly as both sides are already at odds over geopolitical and economic issues.
