Trump says he's raising EU auto tariffs to 25%

President Donald Trump announced plans to raise tariffs on European Union (EU) cars and trucks imported into the United States to 25%. The announcement was made via his social media platform, Truth Social, with the White House confirming the move would be executed under Section 232 of the Trade Expansion Act, which allows tariffs on imports deemed a threat to national security. Trump cited the EU’s failure to comply with a previously agreed trade deal as the reason for the increase, while clarifying that vehicles produced in U.S. plants by EU manufacturers would be exempt from the tariffs. This development follows a series of legal and diplomatic challenges surrounding U.S.-EU trade relations. Earlier this year, the U.S. Supreme Court struck down a significant portion of Trump’s tariff policy, ruling that the International Emergency Economic Powers Act (IEEPA) did not authorize the president to impose tariffs. In response, the administration introduced a 10% global tariff under a different legal provision, later raising it to 15%. The EU had warned that these tariff hikes jeopardized the ongoing trade agreement negotiations and postponed a planned vote on the deal. The European Commission has emphasized its commitment to a stable transatlantic relationship but has also indicated it will protect EU interests if the U.S. takes actions inconsistent with the joint trade commitments. The White House justified the tariff increase by stating that the EU has not made sufficient progress on agreed-upon trade commitments. The administration maintains that tariff adjustments are a reserved right when trade partners fail to comply with agreements. The 25% tariffs on vehicles and certain auto parts, initially imposed last year under Section 232 citing national security concerns, remain in place and are now set to be expanded. This move could further strain U.S.-EU trade relations, potentially impacting automotive industries and broader economic cooperation between the two regions.