Trump raises US tariffs on EU cars to 25%

United States President Donald Trump says he will increase tariffs on cars and trucks from the European Union next week, noting that the bloc is not complying with an earlier trade deal.

The pact, which was struck last summer, had capped the United States tariff on EU autos and parts at 15 per cent, which is lower than the 25-per cent duty that Trump imposed on many other trading partners.

These sector-specific duties were not affected by a Supreme Court ruling earlier in the year that struck down a swath of Trump’s global levies.

Trump wrote on Truth Social on Friday: “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%.”

He told a Florida event later on Friday that Washington had informed Germany of his threat because “they and other European nations have not adhered to our trade deal.”

He accused German automakers like Mercedes-Benz and BMW of ripping off Americans.

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Trump’s announcement came a day after his renewed criticism of German Chancellor Friedrich Merz. Trump told Merz to focus on ending the Ukraine war instead of “interfering” on Iran.

Germany would likely be hit hard by a sharp vehicle tariff, as it is responsible for a significant amount of EU auto exports.

Reacting to the announcement, a European Commission spokesperson told AFP: “Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.”

The spokesperson added that the bloc is implementing its commitments “in line with standard legislative practice” and keeping the Trump administration updated during this process.

In July 2025, the EU had laid the groundwork for possible retaliation if talks with United States fell through – preparing a list of U.S. goods that could be targeted.