President Donald Trump has announced plans to raise tariffs on cars and trucks imported from the European Union (EU) to 25%, effective next week. This decision was communicated via a post on Truth Social, where Trump cited concerns over the EU's compliance with a trade agreement. He stated that vehicles produced in U.S. plants would not be subject to these tariffs.
The announcement comes in light of a recent Supreme Court ruling that deemed a significant portion of Trump's previous tariff measures illegal. The court's 6-3 decision highlighted that the International Emergency Economic Powers Act (IEEPA), which Trump had used to justify earlier tariff actions, does not grant the president authority to impose tariffs. Following this ruling, Trump signed an executive order to introduce a new 10% global tariff rate, which he later increased to 15%.
In response to the announced tariff increase, the EU expressed concerns that their trade agreement with the U.S. could be jeopardized. A spokesperson for the European Commission indicated that the EU is maintaining communication with U.S. officials while seeking clarity on American commitments. The spokesperson also emphasized the EU's commitment to a predictable transatlantic relationship and hinted at potential measures to protect EU interests if the U.S. actions are inconsistent with prior agreements.
The proposed tariff increase may significantly affect major European automakers such as Mercedes, BMW, and Volkswagen, which import a large portion of their vehicles sold in the U.S. from Europe. The broader context includes existing 25% tariffs on certain vehicle imports, which the Trump administration had previously implemented under national security concerns.