Kamal Ghorui
US President Donald Trump said the United States will raise tariffs on cars and trucks imported from the European Union to 25 per cent next week, claiming the bloc was not complying with a previously agreed trade deal. “I am pleased to announce that, 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 posted in Truth Social. “The Tariff will be increased to 25%,” he added. Trump said vehicles manufactured in US plants would not face tariffs. “It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” he said. The US President also claimed that several automobile and truck manufacturing plants were being built in the country. “Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing,” Trump said. “These Plants, staffed with American Workers, will be opening soon–There has never been anything like what is happening in America today!” he added.The latest move places renewed pressure on US-EU trade ties, particularly in the automobile sector where European brands have a strong export presence in the American market.Both the US and the EU had earlier reaffirmed support for their trade framework, known as the Turnberry Agreement, named after Trump’s golf course in Scotland.However, the status of the 2025 deal came under question after the US Supreme Court ruled earlier this year that Trump did not have the legal authority to declare an economic emergency and impose tariffs on EU goods.The original agreement had set a tariff ceiling of 15 per cent on goods from the EU. Following the court ruling, that rate fell to 10 per cent as the Trump administration launched a fresh set of import taxes under other legal provisions.The administration is currently conducting investigations into trade imbalances and national security risks, steps that could lead to a broader tariff regime and potentially put the EU agreement at risk.The European Union had earlier said the bilateral deal would save European automakers around 500 million to 600 million euros ($585 million to $700 million) every month.According to Eurostat, the value of EU-US trade in goods and services stood at 1.7 trillion euros ($2 trillion) in 2024, averaging 4.6 billion euros a day.“A deal is a deal,” the European Commission said in February after the Supreme Court ruling, AP quoted. “As the United States’ largest trading partner, the EU expects the U.S. to honor its commitments set out in the Joint Statement — just as the EU stands by its commitments. EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”
