‘Not complying to trade deal’: Trump announces 25% tariffs hike on cars, trucks from EU

US President Donald Trump on Friday announced that he will raise tariffs on cars and trucks imported from the European Union to 25 per cent starting next week. Trump accused the bloc of not complying with an earlier trade deal struck last year that had capped the US tariffs on EU autos and parts at 15 per cent.

In a post on his Truth Social platform, Trump wrote, “I am pleased to announce that, 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 further added, “It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF. Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing. These Plants, staffed with American Workers, will be opening soon — There has never been anything like what is happening in America today!”

The announcement came a day after Trump renewed his criticism of German Chancellor Friedrich Merz. The US president told Merz to focus on ending the war in Ukraine rather than “interfering” in Iran. Meanwhile, Trump has also warned to pull out US troops from Italy and Spain, saying they did not help in securing the Strait of Hormuz amid the war in West Asia.

The United States ranks as the second-largest destination for EU vehicle exports, behind the United Kingdom, according to a 2025 fact sheet by the European Automobile Manufacturers’ Association. More than 20 per cent of EU vehicle exports are shipped to the United States.

In 2024, Germany alone exported around 450,000 vehicles to the US, according to the German Association of the Automotive Industry, though that number has declined since.