President Donald Trump announced Friday that he will hike tariffs on cars and trucks imported from the European Union to 25% starting next week.
This move effectively tears up the “Turnberry Agreement” reached last summer which had previously capped duties at 15%.
In a post on Truth Social, the President justified the sudden increase by claiming the trade bloc failed to meet its end of the bargain.
“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 wrote.
He later told reporters that the shift to higher taxes “forces them to move their factory production much faster” to American soil.
European officials quickly pushed back calling the move “unacceptable.”
A spokesperson for the European Commission stated that the bloc is following the deal through its standard legal processes and warned, “Should the U.S. take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.”
Economists warn the move could destabilize global markets but Trump remains firm stating that if companies produce vehicles in U.S. plants, “there will be NO TARIFF.”
