President Donald Trump announced Friday that he will increase US tariffs on European Union cars and trucks to 25% next week, accusing the bloc of failing to comply with a trade deal struck last summer.
The previous agreement capped tariffs on EU autos and parts at 15%. Trump's hike brings them in line with the 25% duty he has imposed on many other trading partners.
"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," Trump wrote on Truth Social. "The Tariff will be increased to 25%."
A European Commission spokesperson responded: "Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests."
The move threatens to deepen trade tensions between the US and EU, with Germany-a major auto exporter to the US-likely to face significant impact. In 2024, Germany exported roughly 450,000 vehicles to the United States.
The announcement follows Trump's recent criticism of German Chancellor Friedrich Merz, and comes just days after the European Parliament conditionally approved the EU-US trade pact, which still requires negotiation with EU member states.