Trump says he's raising EU auto tariffs to 25% without clarifying how
President Donald Trump announced plans to raise tariffs on European Union cars and trucks to 25%, citing non-compliance with a trade deal, though he did not specify the legal authority for the move. This follows a Supreme Court ruling that invalidated his previous use of the IEEPA law to impose tariffs, prompting a shift to other statutory mechanisms. The EU has expressed concern and maintained it is keeping options open to protect its interests if U.S. actions contradict prior agreements.
- ▪President Trump announced a planned 25% tariff on EU cars and trucks, claiming the EU has not upheld its trade deal commitments.
- ▪The Supreme Court previously ruled that Trump's use of the IEEPA law to impose tariffs was unauthorized, limiting his legal options.
- ▪The Trump administration has previously applied 25% tariffs on vehicles and auto parts under Section 232, citing national security concerns.
- ▪The EU warned that its trade agreement with the U.S. could be at risk and is monitoring the situation closely.
- ▪European automakers like Mercedes, BMW, and Volkswagen could be significantly affected due to their reliance on European manufacturing for U.S. sales.
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President Donald Trump said he would increase tariffs charged to the European Union for cars and trucks to 25%, without saying what authority he would use to raise the levies."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 on Truth Social on Friday. "The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF."The Supreme Court ruled in February that a large part of Trump's tariff agenda was illegal.
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