US President Donald Trump announces increase of tariffs on EU cars to 25%

US President Donald Trump announced on Friday that tariffs on cars and trucks imported from the European Union will be increased to 25% starting next week.

This decision marks a significant escalation in trade tensions between the United States and the EU.

The current tariff rate on EU vehicles is 15%, established under a trade deal negotiated last July.

Trump accused the EU of "not complying with our fully agreed to trade deal" but did not provide specific details on the alleged non-compliance.

The tariff hike affects a key European industry, with countries like Germany and France likely to be impacted due to their substantial auto exports to the US.

Trump urged European carmakers to shift production to the US, stating that vehicles produced in American plants would not be subject to tariffs.

This move follows stalled negotiations over steel and aluminum tariffs and comes amid broader tensions in US-EU trade relations.

The original trade agreement, known as the Turnberry Agreement, set tariffs on most European goods at 15%, providing relief from previously threatened 30% tariffs.

The European Parliament had suspended approval of the deal earlier this year due to concerns over US actions, including threats to annex Greenland.

It later approved the agreement with a clause allowing suspension if the US administration undermines the deal's objectives or engages in economic coercion.

Trump's announcement also comes after a US Supreme Court ruling that limited the president's authority to impose tariffs under an economic emergency, reducing the tariff ceiling from 15% to 10% in some cases.

The administration has since sought alternative legal bases for import taxes.

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