US President Donald Trump announces a tariff hike from 15% to 25% on European vehicles, claiming Brussels failed to implement last year's trade agreement, prompting fierce pushback from EU officials and calls for retaliatory measures.
US President Donald Trump announced on Friday, 1 May 2026, that he will increase tariffs on European Union automobiles and trucks to 25% next week, up from the previously agreed 15%, citing the bloc’s failure to comply with their bilateral trade agreement.
“Based on the fact that 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,” Trump stated on social media, adding that vehicles manufactured at US plants would face no tariffs.
The European Commission swiftly denied Trump’s allegations, insisting Brussels has honoured the terms of last summer’s trade deal. The dispute centres on implementation timelines rather than intent, as EU lawmakers only advanced enabling legislation in March 2025, with final approval not expected until June 2025.
Under the August 2024 agreement, the US reduced its 25% automotive tariff to a net 15% in exchange for the EU eliminating duties on American industrial goods and accepting US vehicle safety and emissions standards. A Trump administration official justified the tariff increase by noting “the EU has not complied with the autos deal after eight months.”
The announcement drew sharp criticism from European leaders and industry groups. Marcel Fratzscher, president of Germany’s DIW economic institute, urged Brussels and Berlin to “finally show some backbone” by imposing retaliatory tariffs and taxing US tech companies. Germany’s VDA auto association warned the higher tariff would substantially increase costs.
The tariff escalation comes amid broader US -EU tensions over the Iran conflict and Europe’s refusal to deploy naval forces to the Strait of Hormuz.
Trump recently threatened to reduce American troop levels in Germany, Italy and Spain following criticism from German Chancellor Friedrich Merz.
Earlier, the European Parliament announced on 26 March 2026 that its members endorsed their position on two proposals covering tariff arrangements under the EU-US Turnberry trade deal.
