Trump says he will raise tariffs on EU autos to 25%
US President Donald Trump announced on May 1, 2026, that he would raise tariffs on cars and trucks imported from the European Union to 25%, citing non-compliance with a previously agreed trade deal. He argued the move would encourage European automakers to shift production to the United States, while EU officials criticized the decision as arbitrary and damaging to transatlantic relations. The announcement caused European automaker stocks to decline and raised concerns about escalating trade tensions between the US and EU.
- ▪President Donald Trump announced a 25% tariff on EU car and truck imports, effective the following week, due to alleged non-compliance with a trade agreement.
- ▪The EU had agreed in August to reduce auto tariffs in exchange for US industrial goods access and mutual vehicle standards, but implementation is ongoing.
- ▪EU lawmakers, including Bernd Lange, condemned the US move as unreliable and unacceptable, signaling a firm response.
- ▪Automaker stocks including Ford, Stellantis, and General Motors declined following the announcement.
- ▪A former US Commerce official suggested the tariff hike may also reflect frustration over some European countries' opposition to US-Israeli military actions against Iran.
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Trump says he will raise tariffs on EU autos to 25%Sign up now: Get ST's newsletters delivered to your inboxMr Trump believes the higher tariff would force European car makers to move their factory production to the US more quickly.PHOTO: REUTERSPublished May 02, 2026, 01:03 AMUpdated May 02, 2026, 01:17 AMListenWASHINGTON - US President Donald Trump said on May 1 he would increase tariffs on cars and trucks from the European Union to 25 per cent, saying the bloc had not complied with its trade deal with Washington."Based on the fact 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," he wrote in a social media post."It is fully understood and…
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