US President Donald Trump on Friday announced he was hiking US tariffs on cars and trucks from the European Union next week to 25%.
Trump said he was increasing tariffs because the bloc was not fully complying with the terms of its trade agreement with the US, without citing specifics.
The EU agreed to erase tariffs on US imports in exchange for a 15% tariff on most EU products when it struck a trade agreement with the US last year, averting a bigger trade war.
The tariff threat comes at a time of increased tensions between the US and EU countries against the backdrop of the Iran war.
“Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States,” Trump wrote on Truth Social.
“The Tariff will be increased to 25%,” he said.
Trump added that there will be no levies on cars and trucks built in US assembly plants.
It’s not clear what authority Trump can use to raise taxes on the EU.
The US Supreme Court earlier this year said Trump overstepped his authority by using a 1970s-era law to unilaterally impose his “reciprocal” tariffs on countries across the globe.
European Union lawmakers delayed the process of ratification of the trade deal agreed to with the US after Trump threatened to seize Greenland and the Supreme Court invalidated a large part of Trump’s tariffs agenda.
But the EU Parliament then voted this March in favor of the legislation after lawmakers added safeguards, including a potential suspension clause should the US not stick to the deal struck last summer.
A final vote of approval is not expected before June.
The EU Parliament’s trade committee chair, the German MEP Bernd Lange, said the latest tariff move “demonstrates just how unreliable the US side is.”
“This is no way to treat close partners. Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position,” he added.
Lange said that Trump’s behavior is “unacceptable” and said the EU was honoring its trade agreement with the US.
A European Commission spokesperson disclosed that the EU was seeking clarity on US commitments but also keeping the Trump administration abreast of developments.
“The EU is implementing its Joint Statement commitments in line with standard legislative practice, keeping the US administration fully informed throughout. We maintain close contact with our counterparts, including as we also seek clarity on US commitments,” a spokesperson said.
“We remain fully committed to a predictable, mutually beneficial transatlantic relationship. Should the US take measures inconsistent with the Joint Statement, we will keep our options open to protect EU interests,” the official said.
Hildegard Müller, the president of the German Association of the Automotive Industry (VDA), said that the latest tariff push “represents a renewed and serious strain on transatlantic relations.”
“The costs resulting from these additional tariffs would be enormous for the German and European automotive industry at a time that is already extremely challenging, and would likely also have an impact on consumers in the United States,” she said.
“The trade agreement concluded between the EU and the US must be honored by both sides,” she added. “The automotive industry urgently calls on both sides to de-escalate and to enter into swift negotiations.” – DW.
