Trump Threatens 25% Tariff on Cars from the European Union

President Donald J. Trump announced that he will again raise tariffs on cars and trucks from the European Union to 25%, arguing that the bloc has not fully complied with a previously agreed-upon trade deal.

“I am pleased to announce that, since the European Union is not complying with our trade agreement, next week I will increase tariffs on cars and trucks entering the United States,” the U.S. president stated in a social media post. “The tariff will be increased to 25%,” he explained.

Trump added that the tariffs would not apply to cars produced in U.S. plants. “It is fully understood and agreed that, if cars and trucks are produced in U.S. plants, there will be NO tariffs,” he declared in his familiar tone.

In August of last year, the European bloc agreed to eliminate tariffs on U.S. industrial goods in exchange for a 15% tariff cap on most products entering the United States from Europe.

However, ratification of the agreement is still under review by the European Parliament and national governments, so the process is expected to conclude, in the most optimistic scenario, by the end of this summer.

Nevertheless, the European Commission, the EU’s executive branch, denied that the bloc was in breach of the agreement and affirmed its full commitment to “a predictable and mutually beneficial transatlantic relationship,” while warning that it would keep “all options open” to protect its interests if Trump fails to honor the current agreement.