Trump Slaps 25% Tariffs on EU Cars, Sparking Fresh Trade Tensions

US President Donald Trump has announced plans to impose a 25 percent tariff on cars and trucks imported from the European Union, escalating trade tensions between Washington and Brussels.

Trump said the new tariffs, set to take effect next week, are in response to what he described as the EU’s failure to comply with a previously agreed trade deal. Writing on his Truth Social platform, he insisted the bloc had not honoured its commitments under the agreement reached last summer.

The earlier pact had capped US tariffs on European automobiles and parts at 15 percent—lower than the 25 percent duties applied to several other trading partners. The new measure marks a significant shift and threatens to disrupt transatlantic trade relations.

The European Commission reacted cautiously, warning that it could take action if Washington’s move violates the terms of the agreement. A spokesperson said the EU is implementing its obligations and remains in communication with US authorities, but added that “all options remain on the table” to safeguard European interests.

The announcement has drawn sharp criticism from European policymakers. Bernd Lange described the decision as unacceptable and accused the US of acting unpredictably toward its allies.

Economist Marcel Fratzscher called on European leaders, particularly in Germany, to respond decisively. He urged Brussels to consider retaliatory tariffs and potential taxes on American technology companies to counter the move.

The EU had already prepared contingency measures last year, including a list of US goods that could face tariffs if negotiations with Washington deteriorated.

The latest development adds strain to already fragile transatlantic relations, as disagreements over trade, security, and global conflicts continue to widen.