President Donald Trump announced on Thursday that he is raising tariffs on cars and trucks imported from the European Union to 25%, accusing the bloc of failing to fully comply with a previous trade agreement. The new levies, however, will not apply to vehicles manufactured in the United States.
"It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF," the president stated.
The move marks a significant escalation in transatlantic trade tensions. Trump's administration has long criticized the EU for what it sees as unfair trade practices, particularly in the automotive sector. The European Union has yet to issue an official response, but the announcement is expected to trigger retaliatory measures.
The tariff increase is set to affect a wide range of European automakers, including major brands like Volkswagen, BMW, and Mercedes-Benz. The decision could lead to higher prices for consumers and disrupt supply chains that span both sides of the Atlantic.