Trump Accuses EU of Violating Agreement, Announces Tariff Hike on EU Cars and Trucks to 25% Next Week

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2026-05-03

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U.S. President Donald Trump said on the 1st that he will raise tariffs on automobiles and trucks from the European Union to 25%, claiming that the EU has failed to comply with a previous trade agreement. However, Trump did not specify the basis for the tariff increase.

In a post on his Truth Social platform on the 1st, President Trump wrote: “Given that the European Union has not adhered to the trade agreement we reached, I will raise tariffs on EU automobile and truck imports into the United States next week,” adding, “Tariffs will be increased to 25%.” He also included a condition: “If they manufacture cars and trucks in factories in the United States, there will be no tariffs.”

Last summer, the United States and the European Union signed the “Turnberry Agreement,” which set a 15% cap on tariffs for automobiles and related components. In return, Europe agreed to invest in the United States and implement changes expected to boost U.S. exports. However, after Trump threatened to annex Greenland, the European Parliament temporarily suspended its review of the agreement. Although it was eventually approved in March, disputes over products such as steel caused negotiations to stall again.

In a statement, the European Commission said it is implementing the agreement “in line with standard legislative practices” and has “maintained full communication with the U.S. government throughout.” It also stated, “We will keep all options open to protect the interests of the European Union.”

Trump has targeted the automotive sector, a particularly sensitive area, as it represents a significant portion of Europe’s economy, and the United States is the EU’s largest export market. This move also came a day after Trump again criticized German Chancellor Friedrich Merz. Germany accounts for a large share of EU automobile exports, and a sharp increase in U.S. tariffs could significantly impact the country. Trump’s action is aimed directly at one of the EU’s most export-driven core industries.

Analysts believe German automakers will be the most affected. Companies such as Volkswagen, BMW, and Mercedes-Benz have manufacturing operations in the United States to varying degrees, but many high-end models are still imported, meaning higher tariffs would put greater pressure on profits. Observers are also watching how negotiations between EU countries and the United States will unfold, especially amid ongoing disagreements over foreign policy, approaches toward Iran, and NATO troop deployments.

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