US President Donald Trump has said the United States will raise tariffs on automobiles and trucks imported from the European Union to 25%, citing non-compliance with an agreed trade deal. In a Truth Social post, he added that vehicles produced in US-based plants would not face tariffs and pointed to over $100 billion in automotive investments and new manufacturing facilities under construction in the country. He did not give a further reason for the planned hike, but the announcement came a day after his renewed criticism of German Chancellor Friedrich Merz. Earlier, Trump told Merz to focus on ending the Ukraine war instead of “interfering” on Iran. Germany would likely be hit hard by a sharp tariff on cars and parts, as it is responsible for a significant amount of EU auto exports. EU says Trump’s tariffs on autos show US to be unreliable US President Donald Trump’s announcement to increase tariffs on cars from the EU shows that the U.S. is an unreliable trading partner, EU parliament’s trade committee chair Bernd Lange said on Friday. “This latest move demonstrates just how unreliable the US side is,” Lange said. “This is no way to treat close partners. Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position.” Germany and France could suffer major losses With this decision by Trump, Europe—especially countries like Germany and France—could face significant damage to their automobile sector. Due to higher tariffs, European cars will become more expensive in the US market, which could reduce demand. This will directly impact company profits and production levels. According to media reports, if exports decline, European companies may cut production, which could affect jobs. Additionally, a fall in exports could slow down Europe’s economic growth. Inflation may also rise in the US This decision will also have an impact on the United States. With European cars becoming more expensive, American customers will have to pay higher prices. At the same time, the range of available options in the market may also shrink. There are concerns that the European Union may retaliate by increasing tariffs on American goods. If that happens, the dispute could escalate into a full-scale “trade war”, causing losses on both sides.
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