President Donald Trump announced plans to raise tariffs on cars and trucks imported from the European Union to 25 percent. He said the increase is retaliation for the EU’s failure to follow a trade agreement reached last year. The move comes after the Supreme Court struck down his earlier emergency tariffs on imports from around the world.
In a social media post on May 1, Trump wrote: “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 did not provide specific details about how the EU violated the agreement. Speaking with reporters at the White House before heading to Florida, he said the higher tariffs would push European car companies to move factory production to the United States more quickly. He pointed to Japan and South Korea, which he said are investing $100 billion in new car factories in the U.S. because of his tariff policies.
EU Calls U.S. an Unreliable Partner
European officials reacted strongly to the announcement. Bernd Lange, head of the European Parliament’s trade committee, called the United States an unreliable trading partner.
“This latest move demonstrates just how unreliable the U.S. side is,” Lange said. “This is no way to treat close partners. Now we can only respond with the utmost clarity and firmness.”
Background on the July Trade Deal
The threat reverses parts of a trade deal Trump reached with the EU in July. Under that agreement, the U.S. set a 15% tariff on most European exports. That rate was higher than the 10% the Europeans wanted but lower than the 30% Trump had threatened earlier. The deal also included promises of $600 billion in EU investments in the United States and $750 billion in purchases of U.S. energy.
Trump struck similar 15% tariff deals with other major trading partners, including Japan. These agreements followed months of tense negotiations and tariff threats.
Legal Questions After Supreme Court Ruling
Trump did not say which U.S. law he would use to impose the new 25% tariffs. In February, the Supreme Court overturned his broad emergency tariffs on imports from many countries. Since then, he has said he will rely on other trade laws that usually require investigations into unfair practices before tariffs can be applied.
The Trump administration has also been considering additional tariffs on countries that use forced labor or have excess production capacity that harms U.S. industries. U.S. Trade Representative Jamieson Greer has held hearings on these issues.
Trump has defended his use of tariffs as a way to protect American jobs and bring manufacturing back to the United States. Critics, including some European leaders, argue that the frequent changes create uncertainty and damage relations with longtime allies.
The EU has not yet announced its specific response to the threatened 25% tariff increase, but officials indicated they are prepared to take firm action to protect their interests.
