Trump Threatens to Slam EU Cars with 25% Tariffs, Breaking Trade Promises Again

President Donald Trump is stirring the trade war pot again by threatening to raise tariffs on European cars and trucks from 15% back up to 25%. This comes despite a 2025 US-EU agreement struck in Scotland that aimed to ease tensions by lowering tariffs on most EU imports, including autos and parts, to 15%.

On May 1, Trump took to his preferred platform, Truth Social, to accuse the EU of failing to comply with the deal’s terms. “It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” Trump wrote, attempting to justify his latest tariff threat.

A White House official told Platts, an S&P Global Energy affiliate, that the increased tariffs would be imposed under Section 232 of the Trade Act of 1974. This is the same legal tool Trump previously used to slap 50% tariffs on steel, aluminum, and some copper imports — tariffs that have drawn widespread criticism for harming American manufacturers and consumers.

“While the Trump administration has kept our end of the bargain, the EU has failed to make substantial progress on their agreed-upon commitments, including on auto trade barriers, digital services, carbon taxes, and other provisions of the agreement,” the official claimed. But critics see this as another excuse to escalate trade tensions rather than a good-faith effort to resolve disputes.

Section 232 is distinct from the legal justification Trump used for his earlier country-specific tariffs, which the Supreme Court ruled unconstitutional in February. Yet Trump’s reliance on this law to justify punitive tariffs continues to raise legal and diplomatic eyebrows.

Bernd Lange, chair of the European Parliament’s International Trade Committee, condemned Trump’s threat on social media, calling it “unacceptable” and a sign of “clear unreliability.” Lange emphasized that while the European Parliament continues to honor the Scotland deal and work on finalizing legislation, the US keeps breaking its commitments.

The EU briefly suspended work on the trade deal in February after Trump imposed a 10% global tariff following the Supreme Court’s decision on his tariffs. This back-and-forth highlights the fragility of US-EU trade relations under the Trump administration’s erratic policies.

Despite these tensions, the US and EU recently signed a memorandum of understanding to establish a strategic critical minerals agreement, underscoring the complex and often contradictory nature of their economic relationship.

Trump’s latest tariff threat is yet another example of his administration’s reckless approach to trade — one that prioritizes political posturing over economic stability, punishes American workers and consumers, and undermines alliances. As tariff battles escalate, it’s clear the only winners are corporate cronies and protectionist ideologues, while ordinary Americans foot the bill.