Trump Escalates Trade War: 25% Tariff Hike Threatened on All European Vehicles Starting Next Week!

U.S. President Donald Trump has warned that tariffs on cars and trucks imported from the European Union (EU) will be increased to 25% starting next week. The President made this announcement on Friday through his social media platform, Truth Social, stating that the move is a response to the EU's failure to fully comply with a previously agreed-upon trade deal.

Trump wrote, 'Based on the fact that the European Union has not complied with our fully agreed upon trade deal, I am announcing that effective next week, the tariff on EU cars and trucks entering the United States will be increased to 25%.' However, he clarified that these tariffs would not apply to vehicles manufactured within U.S. industries.

This move comes after the U.S. Supreme Court ruled in February that the administration's previous tariff policy under the ‘International Emergency Economic Powers Act’ was unconstitutional. Despite this, the administration is now seeking to establish a new import tax system based on alternative legal frameworks.

According to the European statistical agency Eurostat, trade in goods and services between the EU and the U.S. reached 1.7 trillion euros (approximately $2 trillion) in 2024, averaging about 4.6 billion euros in daily transactions. The European Union has expressed caution regarding the threat. A spokesperson for the European Commission stated on Friday that if the U.S. takes actions contrary to last year's joint statement on reciprocal and fair trade, the EU will keep all options open to protect its interests.