Donald Trump Threatens European Union With 25% Tariffs On Cars And Trucks Next Week

President Donald Trump said on Friday that he will increase tariffs on cars and trucks imported from the European Union to 25% next week, escalating a dispute over the “fully agreed to Trade Deal.”

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In a post on Truth Social, Trump accused the EU of “not complying with our fully agreed to Trade Deal,” and added, “I am pleased to announce that… next week I will be increasing Tariffs charged to the European Union for Cars and Trucks.”

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Trump also said, “It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” framing the tariff as leverage to push production into the United States.

The AP reported that Trump said the increase would “forces them to move their factory production much faster” to the U.S.

The BBC said the European Commission responded that it would keep “options open to protect EU interests,” while also seeking “clarity” from the US around its commitments.

Reuters reported the tariff hike as Trump’s plan to raise the tariff on autos from the EU to 25%, and the Guardian described it as Trump “tearing up part of the tariff deal” struck at his golf course in Scotland last summer.

The tariff announcement came months after the US and the EU forged a trade deal that set a tariff ceiling of 15% on most goods, with the automotive sector included in that framework.

Al Jazeera said the agreement set tariffs on most goods at 15%, lower than the 30% Trump had previously threatened, and described the Turnberry Agreement as the deal “dubbed the Turnberry Agreement after Trump’s golf course in Scotland.”

Al Jazeera

The BBC reported that the deal was questioned after the US Supreme Court ruled Trump lacked authority to declare a national emergency to justify many of his tariffs, and that the ruling lowered the ceiling on EU tariffs to 10 percent.

Reuters and UPI both tied the broader tariff context to the Supreme Court’s February invalidation of tariffs issued under the International Emergency Economic Powers Act of 1977, after which Trump announced a 10% across-the-board tariff and then later upped it to 15%.

UPI said Trump planned to increase the tariff on vehicles imported from Europe to 25% because the European Union was not complying with the trade deal, and it described the EU delaying a vote to ratify the trade deal because it considered the universal tariff a breach.

The BBC added that the European Parliament suspended approval in January and later approved the deal in March after a clause was added allowing it to be suspended if the Trump administration was deemed to have “undermined the objectives of the deal, discriminated against EU economic operators, threatened member states' territorial integrity, foreign and defence policies, or engaged in economic coercion.”

The European Commission and EU officials rejected the idea that the bloc was failing to comply, while Trump insisted the EU was not adhering to the agreement.

“United States President Donald Trump has said he will increase tariffs on automobiles from the European Union to 25 per cent”

Al Jazeera

The BBC quoted the European Commission response that “We will keep our options open to protect EU interests,” and said the Commission was seeking “clarity” from the US around its commitments.

Al Jazeera reported that a spokesman for the European Commission rejected the bloc was somehow not in compliance, saying, “We remain fully committed to a predictable, mutually beneficial transatlantic relationship,” and adding the commission “will keep our options open to protect EU interests” if Trump does not honour the pre-existing deal.

The BBC also included Trump’s own explanation when he told reporters, “We have a trade deal with the European Union. They were not adhering to it. So I raised the tariffs on cars and trucks.”

In the same coverage, the BBC reported that Bernd Lange, the chair of the European Parliament’s international trade committee, told the BBC that Trump’s statement demonstrated “just how unreliable the US” is as a trading partner and said, “President Trump's behaviour is unacceptable.”

Supply Chain Dive quoted Lange calling the move “unacceptable” and said he refuted allegations that the EU was not complying, while also alleging the U.S. “has repeatedly breached the agreement,” citing tariffs on steel and aluminum.

Different outlets emphasized different drivers and legal angles behind Trump’s 25% tariff threat, even when quoting the same Truth Social message.

The Guardian described the move as Trump “tearing up part of the tariff deal” and said he announced the increase “from 15% to 25% from next week,” while noting that vehicles made in the US by EU companies would be exempt.

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UPI framed the decision as Trump increasing the tariff because the EU was “not complying with a trade deal,” and it explicitly connected the escalation to the Supreme Court’s February invalidation of tariffs under the International Emergency Economic Powers Act of 1977.

The BBC focused on the political and legislative background, saying the deal was approved in March after a clause was added to allow suspension if the Trump administration was deemed to have “undermined the objectives of the deal, discriminated against EU economic operators, threatened member states' territorial integrity, foreign and defence policies, or engaged in economic coercion.”

Reuters’ version, as provided here, centered on the announcement itself, reporting Trump’s plan to raise the tariff on autos from the EU to 25% without adding the broader legal and legislative narrative.

AP’s framing tied the tariff to a fragile macroeconomic moment, saying the move “could jolt the world economy at a fragile moment,” and it connected the timing to the Iran war and to political pressure in the U.S. going into November’s midterm elections.

The tariff threat carried immediate implications for consumers, automakers, and the ongoing trade relationship, with multiple outlets highlighting potential costs and the possibility of retaliation.

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Al Jazeera said the announcement “could jolt the world economy at a time when it is already fragile,” and it reported that Hildegard Mueller, president of Germany’s VDA auto association, urged the US and EU to honour the existing trade agreement, saying the cost of additional tariffs would be enormous and would likely impact US consumers.

BBC

The BBC similarly described the automotive sector as “particularly sensitive,” noting that car manufacturing makes up a significant proportion of Europe’s economy, and it quoted Bernd Lange calling Trump’s move “just how unreliable the US” is.

AP reported that Jennifer Safavian, CEO of Autos Drive America, said the tariff increase “would threaten the progress that has already been made to open EU markets and grow the U.S. auto industry.”

Business Insider reported that Volkswagen said it would review details of the announcement once available, and it quoted Safavian saying an increased tariff “would threaten the progress” recently made between the EU and the US.

Supply Chain Dive and the BBC both pointed to the legislative process and the suspension clause, with Supply Chain Dive quoting Lange about drafting legislation and aiming to finalise in June, and the BBC describing the March approval and the clause allowing suspension if the US undermined objectives.