Trump Raises Tariffs on EU Cars and Trucks to 25% Citing Non-Compliance with Trade Deal

WASHINGTON — President Donald Trump announced Friday that the United States will increase tariffs on cars and trucks imported from the European Union to 25%, effective next week.

In a Truth Social post, Trump stated: “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%.”

He added that companies producing vehicles in U.S. plants will face no tariff and noted that many automobile and truck plants are currently under construction in the United States, with over $100 billion in new investment.

The move reverses a lower 15% tariff rate that had been in place under the July 2025 Turnberry Agreement between Trump and European Commission President Ursula von der Leyen. That deal had reduced previously threatened higher tariffs in exchange for European commitments to invest $600 billion in the U.S. by 2028 and purchase $750 billion in American energy.

Trump and administration officials have repeatedly accused the EU of failing to live up to the terms of the agreement. The tariff increase is intended to pressure European automakers to accelerate production in the United States rather than exporting finished vehicles.

The European Union has not yet issued an official response, though past tariff disputes have prompted threats of retaliation from Brussels. Major European automakers such as Volkswagen, BMW, Mercedes-Benz, and Stellantis maintain significant U.S. manufacturing operations but also export large volumes of vehicles from European plants.

The announcement comes at a time of heightened global trade tensions and follows Trump’s broader use of tariffs to address perceived imbalances and encourage domestic manufacturing. The auto sector is particularly sensitive to these measures because European brands account for a significant share of U.S. luxury and performance vehicle sales.

For American consumers, the higher tariffs are expected to raise prices on many imported European cars and trucks. For U.S. workers and the domestic auto industry, the policy aims to protect jobs and incentivize foreign companies to build more plants stateside.

No immediate details were released on the exact scope of the tariff or any exemptions beyond U.S.-produced vehicles. The White House has indicated the increase is a direct response to non-compliance and part of ongoing efforts to achieve fair and reciprocal trade.