Trump says he’s raising EU auto tariffs to 25% without clarifying how
President Donald Trump said he would increase European Union tariffs on cars and trucks to 25%, without saying what authority he would use to raise the taxes.
“Based on the fact that the European Union has not fully agreed on a Trade Agreement, I will be increasing Tariffs on the European Union for Cars and Trucks coming into the United States next week,” he wrote Real Social on Friday. “TARIFF will be increased to 25%. It is fully understood and agreed that there will be no TARIFF if they produce Cars and Trucks in US Factories.”
The Supreme Court ruled in February that much of Trump’s tariff agenda was illegal. The President’s “reciprocal” tariffs were implemented using a new interpretation of the International Emergency Economic Powers Act (IEEPA), but the high court ruled by a 6-3 majority that the law supporting these import duties “does not authorize the President to impose tariffs.”
Shortly after the Supreme Court decision, Trump said he signed an executive order imposing a new “global tariff” rate of 10% to effectively replace IEEPA taxes; however, these tariffs came with a 150-day time limit under Article 122 of the 1974 Commercial Code. He later said he would raise the global rate to 15%.
The EU warned in February that the trade agreement with the US could be in danger after the announcement of the new tariff rate and postponed its planned vote on the agreement.
The European Union said it was following standard legislative practices and keeping the U.S. administration updated.
“We maintain close contact with our counterparts, including seeking clarity on US commitments,” a European Commission spokesman said. “We are fully committed to a predictable, mutually beneficial transatlantic relationship. Should the United States take measures inconsistent with the Joint Declaration, we will keep our options open to protect EU interests.”
The EU has “failed to make significant progress on agreed commitments” under the trade deal between the countries, a White House official said on Friday.
“The White House has always been clear that the President reserves the right to adjust tariff rates if our trade agreement partners fail to comply with their commitments,” the official said.
The Trump administration last year imposed across-the-board tariffs of 25% on vehicles and certain auto parts imported into the United States, citing national security risks under Section 232. These taxes are still in effect.
The European automakers most affected by the tariff rate change will be Mercedes, BMW, and Volkswagen, which import the bulk of the vehicles they sell in the U.S. from their European facilities.
