Trump Threatens 25% Tariff on EU Cars Amid Trade Deal Dispute

In a brazen escalation of trade hostilities, former President Donald Trump declared on Truth Social that he will increase tariffs on cars and trucks imported from the European Union to 25 percent starting next week. Trump justified the move by accusing the EU of failing to honor the terms of a trade agreement struck last year, though he provided no concrete evidence to back this claim.

The EU-US trade deal, finalized in 2025 and approved by EU lawmakers earlier this year, was designed to ease tariffs and avoid a full-blown trade war. Under the agreement, the EU agreed to a 15% tariff on most of its products entering the US, while the US removed tariffs on many EU imports. The deal also included safeguards allowing suspension if either side reneged on commitments.

Trump’s sudden tariff announcement comes amid broader geopolitical tensions, including conflicts related to Iran. It also follows a US Supreme Court ruling earlier this year that curtailed Trump’s ability to impose unilateral tariffs under a 1970s law, throwing into question the legality of his latest move.

European officials reacted swiftly. Bernd Lange, chair of the EU Parliament’s trade committee, condemned Trump’s action as “unacceptable” and a betrayal of “close partners.” The European Commission confirmed ongoing dialogue with the US but warned it would protect EU interests if the tariffs proceed.

Germany’s automotive industry, a major target of the tariffs, also voiced alarm. Hildegard Müller, president of the German Association of the Automotive Industry, called for urgent de-escalation, warning that the tariffs would inflict severe economic damage on both sides and hurt consumers in the US.

Trump insisted that cars and trucks built in US assembly plants would be exempt, but experts say this carve-out does little to mitigate the broader impact on transatlantic trade relations.

This latest tariff threat underscores a persistent pattern of Trump’s disregard for established trade frameworks and democratic norms. By attempting to unilaterally impose steep tariffs without clear legal authority or transparent justification, Trump risks deepening economic rifts with critical allies and destabilizing a fragile global trade order.

As the EU prepares for a final vote on the trade deal in June, the Trump administration’s unpredictable actions threaten to unravel months of diplomatic effort and economic cooperation. For Americans and Europeans alike, the stakes could not be higher.