United States President Donald Trump has announced a 25 percent tariff on European Union cars and trucks from next week, citing violations of trade agreements. In a post on Truth Social, Donald Trump accused the EU of “not living up to the agreed trade deal”.
Donald Trump said: “I am pleased to announce that, based on the fact that the European Union is not honoring our fully negotiated Trade Agreement, next week I will increase the tariffs charged to the European Union on cars and trucks coming into the United States. The tariff will increase to 25 percent.”
“We fully understand and agree that there will be NO CUSTOMS if they make cars and trucks in US plants. Many car and truck plants are currently under construction, over $100 billion is being invested, A RECORD in the history of car and truck manufacturing. These plants, staffed by American workers, will be opening soon,” he said, “Nothing is happening like America today!”
Trump and European Commission President Ursula von der Leyen agreed on a trade deal last July. It imposed a 15 percent tariff on most goods.
Both the US and the EU have previously reaffirmed their commitment to maintaining the trade framework, known as the Turnberry Agreement, which was named after Trump’s golf course in Scotland.
However, the future of the deal has become uncertain after the Supreme Court ruled that Donald Trump does not have the power to impose tariffs on EU goods.
The original agreement was a 15 percent tariff cap on EU goods, but a Supreme Court ruling reduced that to 10 percent as the Trump administration introduced a new set of import taxes based on other laws.
The EU said it expects the bilateral deal to save European carmakers about 500 million to 600 million euros ($585 million to $700 million) a month.
Following the Supreme Court’s ruling, the European Commission said: “A deal is a deal. As the United States’ largest trading partner, the EU expects the US to live up to its commitments set out in the Joint Declaration – just as the EU will live up to its commitments. EU products must continue to enjoy the most competitive treatment possible without raising tariffs above the clear and comprehensive cap previously agreed.”
(With input from agencies)
