US President Donald Trump has announced that he will increase tariffs on European cars and trucks to 25% next week, citing the EU's failure to comply with their trade deal.
In a post on Truth Social, Trump claimed that the EU was not adhering to the fully agreed-upon trade deal, which was reached last July and set a 15% tariff on most goods.
The Trump administration is currently investigating trade imbalances and national security risks, which could lead to a new tariff regime and put the agreement with the EU at risk of violation.
The EU had expected the bilateral deal to save European automakers around €500 million to €600 million ($585 million to $700 million) a month.
The value of EU-US trade in goods and services reached €1.7 trillion ($2 trillion) in 2024, with an average daily trade value of €4.6 billion.
