US President Donald Trump said on Friday that he will increase the tariffs charged on cars and trucks from the European Union to 25% next week, a move that could further jolt a global economy already rattled by the Iran war.
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Trump said in a social media post that the EU “is not complying with our fully agreed to Trade Deal.”
He gave no further reasons for the planned hike, but the announcement comes at a particularly tense time for relations between the White House and the EU.
On Thursday, Trump renewed criticism of German Chancellor Friedrich Merz, telling him 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.
He also referred to European allies Spain and Italy as “absolutely horrible” for their refusal to get involved in the Iran war.
The intial reaction from the EU’s end came from Bernd Lange, a lead MEP currently negotiating the implementation of the deal with EU member states. He criticised Trump’s announcement as showing “clear unreliability”, and accused the US of repeatedly “breaking its commitments” in its trade relations with the EU.
Turnberry Agreement
Trump and European Commission President Ursula von der Leyen agreed to the trade deal last July which set a 15% tariff on most goods.
Both the US and the EU had previously confirmed their commitment to preserving the trade framework, known as the Turnberry Agreement, which was named after Trump’s golf course in Scotland.
But the status of the 2025 deal was first cast into doubt after the Supreme Court this year ruled that the Republican president lacked the legal authority to declare an economic emergency and charge tariffs on EU goods.
The initial agreement had been a tariff ceiling of 15% on goods from the EU, but the Supreme Court ruling reduced that to 10% as the Trump administration launched a new set of import taxes based on other laws.
The Trump administration is in the middle of investigations on trade imbalances and national security risks to impose a new tariff regime, which could ultimately put the agreement with the EU in risk of violation.
Turnberry Agreement
The EU had said it expected the bilateral deal would save European car manufacturers between €500-600 million a month.
The value of EU-US trade in goods and services amounted to €1.7 trillion in 2024, or an average of €4.6 billion a day, according to EU statistics agency Eurostat.
“A deal is a deal,” the European Commission said in February after the Supreme Court ruling.
“As the United States’ largest trading partner, the EU expects the US to honour 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.”
Negotiations between MEPs and EU governments ongoing
Trump’s announcement comes amid negotiations between the governments of EU member states and MEPs over how to implement the EU-US deal and bring tariffs on most US industrial goods to 0% – as required by the Turnberry Agreement.
EU lawmakers are seeking to attach safeguards after past threats by Donald Trump over Greenland. These include a “sunset clause” under which the deal expires in March 2028 unless both sides agree to extend it. It also includes a “sunrise clause”, which would make tariff preferences conditional to the US respecting its Turnberry commitments.
Member states are split between those behind France and Spain – who back the European Parliament’s tougher stance – while others led by Germany and Italy favour preserving the deal as it was agreed in July 2025.
Earlier this year, MEPs suspended the pact after the United States Supreme Court ruled that some of the tariffs imposed in 2025 by Washington were illegal, prompting Trump to announce fresh 15% duties on imports.
MEP Zeljana Zovko, lead negotiator of the EPP, the largest political group of the EU Parliament, told Euronews that they should refrain from doing the same this time around.
“We should have the deal done and then fight for better relations with the US,” she told Euronews.
Additional sources • AP, AFP
