US President Donald Trump on May 1 threatened to increase tariffs on EU car and truck imports to 25% for what he claims is a failure to comply with the US-EU trade agreement.
The US and the EU reached a deal in Turnberry, Scotland, in July 2025 to lower tariffs to 15% on most EU imports, including cars and car parts. Trump, in a May 1 Truth Social post, accused the EU of failing to comply with the trade deal.
“It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” Trump wrote.
The increased tariff will be implemented under Section 232 of the Trade Act of 1974, a White House official told Platts, part of S&P Global Energy. This is the same trade law that Trump has used to impose 50% tariffs on steel, aluminum and some copper imports.
“While the Trump administration has kept our end of the bargain, the EU has failed to make substantial progress on their agreed-upon commitments, including on auto trade barriers, digital services, carbon taxes, and other provisions of the agreement,” the White House official said.
Section 232 differs from the legal justification Trump used to implement country-specific tariffs on dozens of US trading partners, which the Supreme Court in February determined was unconstitutional.
Trump’s move shows “clear unreliability,” Bernd Lange, chair of the European Parliament’s International Trade Committee, said in a post on X, formerly known as Twitter.
“Trump’s plan to impose 25% tariffs on EU cars is unacceptable,” Lange said. “[The European Parliament] is still honouring the Scotland deal, working to finalise legislation. While the EU delivers, the US side keeps breaking its commitments.”
The EU briefly suspended work on the trade deal in February, accusing Trump of departing from the terms of the trade agreement after he implemented a 10% global tariff following the Supreme Court’s tariffs decision.
The US and EU recently signed a memorandum of understanding setting a framework for a strategic strategic critical minerals agreement.
Author: Rachel Looker
