President Donald Trump announced on Friday that the United States will increase tariffs on European Union cars and trucks to 25% next week, claiming that the bloc failed to comply with an existing trade agreement.
The previous pact, established last summer, capped duties at 15%. However, Trump now seeks to align these rates with the higher levies imposed on other global trading partners. Writing on Truth Social, he stated: “Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs.”
The President specifically criticized German manufacturers, including Mercedes-Benz and BMW, informing Berlin of the threat during an event in Florida, alleging that European nations “have not adhered to our trade deal.”
Germany remains particularly vulnerable to these measures. It exported nearly 450,000 vehicles to the United States in 2024. Consequently, a sharp tariff hike could significantly disrupt the German economy. This move follows Trump’s recent friction with German Chancellor Friedrich Merz over foreign policy priorities.
The European Response
Brussels responded quickly to the escalation, as a European Commission spokesperson told AFP that the bloc maintains its commitments through “standard legislative practice.” However, they warned: “Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.”
Former trade official Wendy Cutler suggested that Trump has “clearly lost patience” with the slow pace of European implementation. She believes the President hopes to “light a fire under Brussels” to accelerate domestic procedures. Meanwhile, industry leaders expressed concern. Dan Anthony, head of the “We Pay the Tariffs” coalition, noted that businesses remain cautious because “you never know what might trigger the next tariff threat.”
