TEMPO.CO, Jakarta - US President Donald Trump on Friday announced he would raise US tariffs on cars and trucks from the European Union to 25% starting next week, according to DW,
Trump said the increase was due to what he described as the bloc’s failure to fully comply with the terms of its trade agreement with Washington, though he did not provide specific details.
The EU had previously agreed to eliminate tariffs on US imports in exchange for a 15% tariff on most EU goods under a deal reached last year, helping avert a broader trade conflict.
The latest tariff threat comes amid rising tensions between the US and European countries, particularly against the backdrop of the ongoing Iran war.
What did Trump say about tariffs on the EU?
"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," Trump wrote on Truth Social.
"The Tariff will be increased to 25%," he said.
Trump added that cars and trucks manufactured at assembly plants in the United States would not be subject to the new levies.
Can Trump raise levies?
It remains unclear what legal authority Trump could use to impose higher tariffs on the EU.
Earlier this year, the US Supreme Court ruled that Trump had overstepped his authority by invoking a 1970s-era law to unilaterally impose so-called “reciprocal” tariffs on countries worldwide.
EU lawmakers advance trade deal, final vote pending
European lawmakers had previously delayed ratification of the trade agreement following Trump’s threat to seize Greenland and the Supreme Court ruling that invalidated parts of his tariff agenda.
However, the European Parliament approved the legislation in March after introducing safeguards, including a potential suspension clause if the US fails to uphold the agreement reached last summer.
A final vote is not expected before June.
'No way to treat partners,' says EU lawmaker
The European Parliament’s trade committee chair, German MEP Bernd Lange, said the latest tariff move “demonstrates just how unreliable the US side is.”
"This is no way to treat close partners. Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position," he added.
Lange also described Trump’s actions as “unacceptable,” stressing that the EU had honored its commitments under the trade deal.
EU seeking clarity on Trump's latest tariff threat
A European Commission spokesperson told DW that the bloc is seeking clarification from Washington while continuing to keep US officials informed of its own actions.
"The EU is implementing its Joint Statement commitments in line with standard legislative practice, keeping the US administration fully informed throughout. We maintain close contact with our counterparts, including as we also seek clarity on US commitments," the spokesperson said.
"We remain fully committed to a predictable, mutually beneficial transatlantic relationship. Should the US take measures inconsistent with the Joint Statement, we will keep our options open to protect EU interests," the official added.
German auto industry calls for de-escalation
Hildegard Müller, president of the German Association of the Automotive Industry (VDA), warned that the tariff escalation could further strain transatlantic ties. "The latest tariff push represents a renewed and serious strain on transatlantic relations," she said.
"The costs resulting from these additional tariffs would be enormous for the German and European automotive industry at a time that is already extremely challenging, and would likely also have an impact on consumers in the United States," she added.
"The trade agreement concluded between the EU and the US must be honored by both sides," Müller said. "The automotive industry urgently calls on both sides to de-escalate and to enter into swift negotiations."
Read: Iranian FM Says US 'Lying' About War Spending, Puts Cost at $100bn
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