President Donald Trump announced on Friday that the United States will raise tariffs on automobiles and trucks imported from the European Union to 25 percent beginning next week, citing the EU’s alleged failure to comply with a previously negotiated trade agreement.
The increase applies to the sector‑specific duty that was capped at 15 percent under the EU‑U.S. trade pact concluded last summer. That cap was lower than the 25 percent tariff the Trump administration imposed on many other trading partners and was not affected by a Supreme Court decision earlier this year that struck down portions of the administration’s broader global tariff regime.
In a post on his Truth Social platform, Trump stated, “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.” No further detail was provided regarding the specific EU actions deemed non‑compliant.
The announcement follows renewed criticism of German Chancellor Friedrich Merz, whom Trump urged to concentrate on ending the war in Ukraine rather than “interfering” in Iran. Germany, a major exporter of vehicles to the United States, could be particularly affected. In 2024, German manufacturers supplied approximately 450,000 vehicles to the U.S., a share of the over‑one‑fifth of total EU vehicle exports destined for the American market.
The EU’s tariff deal with the United States, approved conditionally by the European Parliament in March, required the bloc to lower certain U.S. import duties as a first step toward full implementation of the 2025 agreement. However, the deal also called for additional safeguards, and its ratification still awaits negotiation with individual EU member states.
In April, EU trade commissioner Maroš Šefčovič met with U.S. officials, including Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer, in Washington. Šefčovič indicated that the EU was seeking further progress on reducing the impact of existing U.S. steel tariffs and described the discussions as moving in a positive direction.
The United States remains the second‑largest market for new EU vehicle exports after the United Kingdom, according to a 2025 fact sheet from the European Automobile Manufacturers’ Association. The tariff hike could therefore have significant repercussions for EU automotive manufacturers and for bilateral trade relations, pending any diplomatic resolution of the dispute.
