Washington: President
Donald Trump has announced that he will raise US tariffs on cars and trucks
from the European Union to 25% next week, accusing the bloc of failing to comply
with a trade deal struck last summer.
The
pact had capped US tariffs on EU autos and parts at 15 percent. But Trump wrote
on Truth Social: "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. The Tariff will be increased to 25%."
Speaking
at a Florida event, Trump accused German automakers including Mercedes-Benz and
BMW of "ripping off Americans." Germany, which exports hundreds of
thousands of vehicles to the US annually, would likely be hit hard by the move.
A
European Commission spokesperson told AFP that if the US takes measures
inconsistent with the joint statement, "we will keep our options open to
protect EU interests," adding that the bloc is implementing its
commitments in line with standard legislative practice.
Former
US trade official Wendy Cutler said Trump appears to be "hoping to light a
fire under Brussels to accelerate its domestic procedures." The European
Parliament has given conditional approval to the EU-US trade pact, but it still
needs to be negotiated with EU states before implementation.
The United States is the second largest market for new EU vehicle exports after the United Kingdom, with over a fifth of EU vehicle exports going to the US. Germany alone exported some 450,000 vehicles to the US in 2024.
