Trump Raises EU Auto Tariffs to 25%, EU Warns of Firm Response

The announcement revisits the Turnberry agreement reached last summer, which set a baseline 15% tariff on most EU‑US goods after negotiations eased earlier 50% duties on automobiles. Although the European Parliament ratified the deal in March, the formal trilogue signing remains pending, leaving the arrangement vulnerable to unilateral changes. The deal also linked the tariff concession to EU commitments to purchase American energy and invest in US manufacturing.

Trump said he will raise duties on EU car and lorry imports because the bloc is not living up to the trade pact. He noted that vehicles produced in the United States by EU‑owned plants will be exempt from the increase. EU trade committee chair Bernd Lange called the move unacceptable and said the EU will respond with the utmost clarity and firmness. The tariff hike is slated to take effect starting next week and was announced on a Friday that is a public holiday in many European countries. Trump also referenced ongoing EU-backed plant construction projects, stating they represent a record $100 billion investment in US auto manufacturing.

Higher duties could raise costs for EU automakers exporting to the United States and may prompt the EU to launch a diplomatic campaign or consider counter‑measures. Market analysts watch for possible effects on transatlantic supply chains and on the broader trade relationship, which already faces strain over troop deployments and other disputes. The European Commission has said it remains committed to the original deal but will keep options open to protect EU interests. Some economists warn that the shift could affect vehicle prices for American consumers if importers pass on the added cost.

Watch for the EU's official retaliation plan, any forthcoming negotiations to revive the trilogue process, and further statements from the US administration on trade or defense posture.