Trump Threatens 25% Tariff On EU Cars, Trucks Over Trade Deal Dispute

Last Updated:May 01, 2026, 21:35 IST

Donald Trump will raise tariffs on EU car and truck imports to 25 percent next week, pressuring European automakers and escalating the US EU trade dispute.

US President Donald Trump has announced plans to sharply increase tariffs on cars and trucks imported from the European Union, escalating tensions in the ongoing transatlantic trade dispute.

In a post shared on social media, Trump said the EU was “not complying" with a previously agreed trade deal and warned that tariffs on European vehicles entering the United States would be raised to 25 per cent starting next week.

“I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States," Trump wrote, adding that companies manufacturing vehicles within the US would not face any tariffs.

The US president also claimed that several automobile and truck manufacturing plants were already under construction across America, with investments exceeding $100 billion. He described the development as a historic boost for domestic manufacturing and employment.

“It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF," Trump said in the post.

The announcement marks the latest escalation in Trump’s protectionist trade agenda, which has focused heavily on encouraging companies to shift manufacturing operations to the United States.

The proposed tariff hike could significantly impact European automakers, including manufacturers from Germany, France and Italy, many of whom rely heavily on exports to the American market.

The EU has not yet officially responded to Trump’s latest remarks. However, previous tariff disputes between Washington and Brussels have triggered retaliatory measures and heightened fears of broader trade tensions between the two major economies.

Trump has repeatedly argued that tariffs are necessary to protect American industries and workers, while critics warn that higher import taxes could increase prices for consumers and strain global trade relations further.

News world Trump Threatens 25% Tariff On EU Cars, Trucks Over Trade Deal Dispute

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