U.S. President Donald Trump said Friday that he’ll increase the tariffs charged on cars and trucks from the European Union next week to 25%, a move that might jolt the world economy at a fragile moment.
Trump said within the post that the EU “just isn’t complying with our fully agreed to Trade Deal,” though he didn’t flesh out his objections within the post.
Trump and European Commission President Ursula von der Leyen had agreed to the trade deal last July. It set a 15% tariff on most goods.
Each the U.S. and the EU had previously confirmed their commitment to preserving the trade framework, often called the Turnberry Agreement, which was named after Trump’s golf course in Scotland.
However the status of the 2025 deal was first forged into doubt after the Supreme Court this yr ruled that the Republican president lacked the legal authority to declare an economic emergency and charge tariffs on EU goods.
The initial agreement had been a tariff ceiling of 15% on goods from the EU, however the Supreme Court ruling reduced that to 10% because the Trump administration launched a brand new set of import taxes based on other laws. The Trump administration is in the midst of investigations on trade imbalances and national security risks to impose a brand new tariff regime, which could ultimately put the agreement with the EU in risk of violation.
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The EU had said it expected the bilateral deal would save European automakers about 500 million to 600 million euros ($585 million to $700 million) a month.
The worth of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or a mean of 4.6 billion euros a day, based on EU statistics agency Eurostat.
“A deal is a deal,” the European Commission said in February after the Supreme Court ruling.
“As america’ largest trading partner, the EU expects the U.S. to honor its commitments set out within the Joint Statement — just because the EU stands by its commitments. EU products must proceed to learn from probably the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”
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