Donald Trump plans to raise tariffs on EU cars and trucks to 25%, up from the current 15%. He claims the EU is not complying with a trade deal but did not provide details.
Donald Trump is increasing the tariffs charged on cars and trucks from the European Union to 25%.
The US president accused the EU of "not complying with our fully agreed to trade deal" in a post on Truth Social, but did not explain how.
"I am pleased to announce that… next week I will be increasing Tariffs charged to the European Union for Cars and Trucks," Trump said on Friday.
The current level of tariffs charged on goods entering the US from the EU is 15%, under a deal negotiated last July.
The trade deal agreed between the EU and US, at Trump's Turnberry golf course in Scotland, set levies on most European goods at 15%.
It was a reprieve for the EU from the 30% tariffs Trump had threatened to impose as part of his "Liberation Day" wave of tariffs that April.
In exchange, Europe had agreed to invest in the US and make changes on the continent expected to boost US exports.
As tensions mounted over President Trump's threats to annex Greenland, a self-governing Danish territory, the European Parliament in January suspended the approval of the deal.
It later included a clause stating the deal can be suspended if the Trump administration is deemed to have "undermined the objectives of the deal, discriminated against EU economic operators, threatened member states' territorial integrity, foreign and defence policies, or engaged in economic coercion".
It was approved by the European Parliament in March, following the dispute.
Announcing the tariff hikes, Trump urged European carmakers to shift production to the US.
"It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF," his Truth Social post read.
He said billions of dollars are being invested in car and truck plants across the country, figures he described as "a record in the history of car and truck manufacturing".
"There has never been anything like what is happening in America today," Trump added.
Trump's Liberation Day tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), have since been ruled illegal by the Supreme Court, with firms that paid up now seeking refunds after a Supreme Court decision.
But the tariffs affecting cars fall under a different legal process, and are not impacted by the Supreme Court ruling.
The new tariff rate for EU cars and trucks will be increased to 25% from the current 15%.
Trump is raising tariffs because he accuses the EU of not complying with a previously agreed trade deal.
The new tariffs on EU vehicles are set to take effect next week.
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