Trump says he will raise tariffs on cars in the European Union to 25%

President Donald Trump said he would increase EU tariffs on cars and trucks to 25%, without saying what authority he would use to raise the tariffs.

“Based on the fact that the EU is not adhering to our fully agreed upon trade deal, next week I will be increasing EU tariffs on cars and trucks coming into the US,” he wrote on Truth Social on Friday. “The tariff will be increased to 25%. It is fully understood and agreed that if they produce cars and trucks in US factories, there will be no tariff.”

The Supreme Court ruled last February that a large part of Trump’s tariff agenda was illegal. The president’s “reciprocal” tariffs were enacted using a new reading of the International Emergency Economic Powers Act, but the Supreme Court said by a 6-3 majority that the law backing those import duties “does not permit the president to impose tariffs.”

Shortly after the Supreme Court ruling, Trump said he signed an executive order imposing a new 10% “global tariff” rate to effectively replace the IEEPA tariffs, even though those tariffs came with a 150-day time limit under Section 122 of the Trade Act of 1974. He then said he would increase the global rate to 15%.

The European Union warned in February that its trade agreement with the United States could be at risk after the announcement of the new tariff rate and the postponement of the scheduled vote on the agreement.

The European Union said it follows usual legislative practices and keeps the US administration informed.

A European Commission spokesman said: “We maintain close contact with our counterparts, including also seeking clarification on US commitments.” “We remain fully committed to a predictable and mutually beneficial transatlantic relationship. If the United States takes actions inconsistent with the Joint Statement, we will keep our options open to protect the interests of the European Union.”

A White House official said in a statement on Friday that the European Union “failed to make tangible progress on its agreed-upon commitments” under the trade agreement between the two countries.

“The White House has always been clear that the president reserves the right to adjust tariff rates if our trade deal partners fail to adhere to their obligations,” the official said.

The Trump administration last year implemented broad 25% tariffs on vehicles and some auto parts imported into the United States, citing national security risks under Section 232. Those tariffs remain in place, and the White House said Trump would increase EU tariffs under Section 232.

The European automakers that could be most affected by the change in tariff rates are Mercedes, BMW and Volkswagen, which import a large percentage of the vehicles they sell in the United States from their factories in Europe.