U.S. President Trump has announced that he will increase import tariffs on European cars and trucks to 25%. This hike is a response to what Trump considers insufficient compliance with a new trade deal by the EU.
Trump says that the European Parliament is not adhering to the trade deal he signed late last year with Commission President Von der Leyen. The current import tariffs are 15%.
These higher tariffs target the European automobile industry, which is already vulnerable. In 2024, the U.S. accounted for 22% of European exports, worth €38.9 billion, making it the sector's second-largest market.
Promotion
Unacceptable
The higher import tax does not apply to vehicles produced in the U.S. by European car manufacturers. This appears to be an attempt to encourage foreign investment in the U.S., according to Trump.
A spokesperson for the European Commission said that the EU will take all necessary measures to protect its interests. The Commission emphasized that the EU complies with its obligations.
Bernd Lange, chair of the European Parliament’s Committee on International Trade, responded sharply. He called Trump’s plan 'unacceptable' and stated that the EU must remain clear and resolute in the face of these threats.
Trade war
This comes a few weeks after the European Parliament ratified the trade deal, having previously suspended the approval process due to Trump's earlier threats.
The future consequences of these tariffs are unforeseeable. Experts warn that higher car costs for consumers are to be expected and that the EU may implement retaliatory measures, which would further complicate trade relations.
Although Trump's announcement escalates tensions between the U.S. and the EU, it is unclear why Trump has made this policy shift. In recent weeks, he has made several unfriendly and dismissive remarks about 'Europe', especially because they refused to participate in his war against Iran.
Fewer troops
This weekend, Trump also announced that the number of U.S. troops in Germany will be reduced by about 5,000 soldiers. This troop reduction is part of the new U.S. Security Strategy he announced earlier this year, following his earlier threat to seize Greenland.
Trump openly speculates that he will no longer provide military support to European Atlantic allies, and EU countries are increasingly openly discussing a European Defense Force without the U.S.