The dispute comes amid wider tension between Washington and Brussels over the Iran war and Europe’s refusal to send naval forces to reopen the Strait of Hormuz.
Under last year’s agreement, the Trump administration had lowered automotive tariffs on EU imports to a net 15%, after previously imposing a 25% levy on global auto imports under national security trade rules.
In return, the EU agreed to remove duties on US industrial goods, including vehicles, and accept US safety and emissions standards. However, implementation in Europe has moved slowly, with EU legislation still going through the approval process.
The tariff announcement hit automaker shares. Ford, Stellantis and General Motors all fell after Trump’s remarks.
European carmakers already have major US operations, while some are planning further investment. Mercedes-Benz has said it will invest US$4 billion in its Alabama plant through 2030 as part of a wider US investment plan.
Trade experts warned that the latest move could intensify friction between the US and EU, particularly as both sides are already at odds over geopolitical and economic issues.