The White House says it will raise tariffs on EU-made cars to 25%.
(Provided by iStock)
The White House said Friday that it will increase the duties on cars and trucks from the European Union to 25%.
In a social media post, President Donald Trump said the EU is not complying with the terms of a trade deal negotiated with European leaders last year. That agreement capped tariffs on most goods at 15%, although the U.S. Supreme Court later invalidated the administration’s position permitting open-ended tariffs without Congress’ approval.
The EU has yet to implement the new trade agreement.
Prior to 2025, the tariff on most vehicles brought into the U.S. was 2.5%. The president said he believes the 25% levy will make European automakers quickly move production to the U.S.
Regardless of whether the 25% auto tariff sticks, observers say the Trump administration may be preparing another round of widespread tariffs. The Office of the U.S. Trade Representative is currently investigating the use of overseas forced labor in foreign countries, and whether trade partners are overproducing goods, making it difficult for American manufacturers to compete.
Many experts predict the trade office will release findings that support the administration’s position, setting the stage for new tariffs.
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