Will EU auto tariffs hit 25% as Trump threatens next week?

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Trump Threatens to Raise EU Auto Tariffs to 25% Next Week Amid Trade Deal Dispute

President Donald Trump has announced his intention to increase US tariffs on cars and trucks imported from the European Union to 25% next week, citing non-compliance with a prior trade agreement. This proposed hike follows a previous pact that had capped US tariffs on EU auto imports and parts at 15%.
EU Accused of Non-Compliance with Trade Deal

Trump stated on his Truth Social platform that the European Union has failed to adhere to a trade deal agreed upon last summer. He specifically mentioned Germany and other European nations, accusing them and their automakers, such as Mercedes-Benz and BMW, of "ripping off Americans." Germany, as a major exporter of vehicles to the US, would be significantly impacted by such a tariff increase.
EU Reserves Right to Protect Interests

A spokesperson for the European Commission indicated that the EU is implementing its commitments and keeping the US administration informed. However, they added that should the US proceed with measures inconsistent with their agreement, the EU will retain its options to safeguard its own interests. The bloc had previously established the groundwork for potential retaliation if trade talks with Washington faltered.
Hopes to Expedite Domestic Procedures

Former US trade official Wendy Cutler suggested that Trump's threat might be an attempt to expedite the European Union's internal procedures for implementing the trade deal. EU lawmakers had given conditional approval to the tariff agreement in late March, but further negotiation with EU member states is still required before its full implementation. The United States represents the second-largest market for new vehicle exports from the EU, with over one-fifth of these exports directed to the US. Germany alone exported approximately 450,000 vehicles to the United States in 2024.

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Will EU auto tariffs hit 25% as Trump threatens next week?

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