Donald Trump has announced a sharp increase in tariffs on cars and lorries imported from the European Union, signalling a breakdown in parts of last year’s trans-Atlantic trade understanding. The tariff will rise from 15 percent to 25 percent from next week, with Washington accusing Brussels of failing to fully implement agreed commitments.
The decision marks a partial rollback of the deal reached in Scotland in 2025, under which tariffs on most EU exports, including automobiles, were reduced to a baseline of 15 percent.
Trump said vehicles manufactured within the US by European automakers would be exempt from the higher tariff. He also pointed to ongoing investments by global carmakers in US manufacturing, claiming billions of dollars are being deployed to expand domestic production and create jobs.
The move drew a strong response from European leaders. Bernd Lange, who chairs the European Parliament’s trade committee, criticised the US action as unreliable and warned of a firm response.
While the European Parliament had earlier voted to move forward with the deal, final ratification—requiring approval from the European Commission, European Council and Parliament—remains pending.
The European Commission indicated it remains committed to the agreement but said it would keep its options open to safeguard EU interests. Officials are expected to intensify diplomatic engagement to prevent further escalation.
The tariff hike comes amid broader strains in US-Europe relations, including remarks by Trump about potentially reducing US troop deployments in Europe. The developments also follow recent high-level talks in Washington led by Maroš Šefčovič aimed at advancing the trade pact.
The 2025 agreement had reduced tariffs on EU goods from as high as 50 percent in some sectors, particularly automobiles. In return, the EU committed to large-scale energy purchases from the US and pledged significant investments in the American economy.
With the latest move, uncertainty has returned to transatlantic trade ties, raising concerns for global automobile supply chains and exporters.
