President Donald Trump announced Friday that tariffs on cars imported from the European Union will rise to 25% next week. The move comes in response to what Trump claims is the EU's failure to comply with a previously agreed trade deal.
Tariff Increase Details
In a Truth Social post, Trump stated that the EU is 'not complying with our fully agreed to Trade Deal.' He added that automakers could avoid the new tariffs by producing vehicles at plants located in the United States. This increase would raise tariffs from the current 15% ceiling outlined in the 2025 US-EU trade framework.
The move is part of Trump's broader trade agenda, which has consistently prioritized domestic manufacturing and American workers.
Impact on US Automakers
The announcement comes as several automakers are investing heavily in new US facilities. Volkswagen, for example, is shifting production at its Tennessee plant to focus on higher-selling models like the Atlas SUV. General Motors also recently confirmed a $340 million investment in two US propulsion plants, though they do not expect to increase hiring as a result.
Trump also noted that several automotive plants are 'currently under construction' and will be 'staffed with American workers,' highlighting his administration's focus on boosting domestic manufacturing.
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