President Donald Trump announced Friday a new 25% tariff on cars and trucks imported from the European Union starting next week, appearing to restart a trade war with the EU.
President Donald Trump stops to speak to reporters before boarding Marine One as he departs from the South Lawn of the White House in Washington, DC, on May 1, 2026. (Photo by SAUL LOEB / AFP via Getty Images)
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Trump said he was implementing the tariffs because “the European Union is not complying with our fully agreed to Trade Deal,” he wrote on Truth Social, adding that vehicles produced in the U.S. will not be subject to the levy.
The U.S. agreed to a 15% tax on most EU products in July, and the EU agreed to get rid of tariffs on most U.S. industrial goods.
Trump told reporters Friday shortly after his announcement the tariffs “forces them to move their factory production [in the U.S.] much faster.”
Germany: $26 billion
Slovakia: $6.3 billion
Italy: $4 billion
Sweden: $4 billion
Austria: $1.8 billion
Hungary: $1.8 billion
Belgium: $1.4 billion
France: $611 million
Finland: $183 million
Spain: $104 million
*Source: International Trade Centre 2024 Trade Map
“The U.S. has repeatedly breached the agreement,” chair of the European Parliament’s trade committee, Bernd Lange, told Bloomberg. “This latest move demonstrates just how unreliable the U.S. side is.” Lange previously accused the U.S. of violating the trade deal reached in July when he announced he would raise global tariffs from 10% to 15% in the wake of the U.S. Supreme Court ruling striking down Trump’s so-called reciprocal tariffs.
The Supreme Court’s February ruling prevented Trump from using the International Emergency Economic Powers Act to invoke his so-called reciprocal tariffs, but the tariffs on European cars were established under a different law not subject to the ruling, according to The New York Times. The trade deal reached with the European Union in July has faced numerous hurdles, including the Supreme Court ruling, and it has yet to be officially ratified by the European Union.
Trump announced Thursday he would remove tariffs on Scottish whiskey “in honor” of King Charles III and Queen Camilla after their visit to the U.S. this week. The whiskey was subject to a 10% tariff, as are most other goods from the U.K. pursuant to a trade deal announced between the two countries in May last year.
Trump Says He’s Removing Tariffs On Scotland’s Whiskey ‘In Honor’ Of King’s Visit (Forbes)
Supreme Court Strikes Down Trump’s Tariffs As Unlawful (Forbes)
Trump Has ‘Backup Plan’ After Supreme Court Overturns Tariffs—Here’s How Far He Could Go (Forbes)
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