President Donald Trump said he would raise European Union tariffs on cars and trucks to 25%, but did not say what authority he would use to raise the tariffs.
“Due to the fact that the European Union is not honoring the trade agreement that we fully agreed to, next week we will be increasing the tariffs we impose on the European Union on cars and trucks imported into the United States,” he told Truth Social on Friday. “Tariffs will increase to 25%. It is well understood and agreed that if cars and trucks are produced in U.S. factories, there will be no tariffs.”
In February, the Supreme Court ruled that most of President Trump’s tariff policies were illegal. Although the president’s “reciprocal” tariffs were invoked using a novel interpretation of the International Emergency Economic Powers Act (IEEPA), the high court said in a 6-3 majority that the law underlying these import duties “does not authorize the president to impose tariffs.”
Immediately after the Supreme Court’s decision, President Trump said he signed an executive order imposing a new 10% “universal tariff” to effectively replace the IEEPA tariffs, which had a 150-day deadline under Section 122 of the Trade Act of 1974. He then said he would raise global tariffs to 15%.
In February, the EU warned that the announcement of new tariffs could put its trade agreement with the United States in jeopardy, and postponed a planned vote on the deal.
The European Union said it was following standard legislative practices and kept abreast of the U.S. government’s latest information.
“We maintain close contact with our partners, including to clarify US commitments,” a European Commission spokesperson said. “We remain committed to a predictable and mutually beneficial transatlantic relationship. Even if the United States takes steps that are inconsistent with the Joint Statement, we will keep our options open to protect the EU’s interests.”
White House officials said in a statement Friday that the EU has “failed to make substantive progress on agreed commitments” under the trade deal between the two countries.
“The White House has always made clear that the president reserves the right to adjust tariff rates if trade agreement partners do not honor their commitments,” the official said.
Last year, the Trump administration imposed widespread 25% tariffs on automobiles and some auto parts imported into the United States, citing national security risks under Section 232. These levies are still in effect, and the White House said President Trump would increase the EU levies under Section 232.
The European automakers most likely to be affected by the tariff changes would be Mercedes, BMW, and Volkswagen, which import most of the vehicles they sell in the United States from factories in Europe.
