The US president has accused the bloc of “not complying” with a trade deal reached last summer, hiking automotive industry levies
US President Donald Trump has announced 25% tariffs on EU-made cars and trucks, accusing the bloc of breaching a trade deal reached last summer but yet to be fully ratified by EU lawmakers.
The move constitutes a 10% hike from current 15% levies on the automotive industry. Announcing the decision, Trump urged European car makers to move their manufacturing to the US, saying that such cars would not be subjected to increased tariffs.
“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%,” Trump wrote on his TruthSocial platform.
While the deal between the US and the EU was agreed last July following a brief trade war, it ended up left in the bloc’s bureaucratic limbo. The EU Parliament voted at the end of March to advance the agreement, having twice delayed it before. However, the deal has not yet been fully ratified by the process known as the “trilogue.” To be fully implemented, the agreement must be approved not only by the legislature, but also by the EU Commission and the council of EU leaders.
The trade deal has been repeatedly criticized as a capitulation of EU bureaucrats before the US leader due to its generally unfavorable terms. Former EU foreign policy chief Josep Borrell, for instance, has repeatedly blasted the bloc’s passive stance in the trade standoff with the US, stating that the “deal was unfair from the beginning,” with Washington imposing 15% tariffs on the bloc while “we reduced ours on them.”
Trump’s announcement prompted an immediate reaction in the EU, with the Parliament’s international trade committee head, Bernd Lange, lamenting Washington’s untrustworthiness and mulling retaliation.
“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 stated without providing any insights on potential countermeasures.
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