Overview
- Trump announced on his social media site that passenger cars and commercial vehicles from the European Union will face a 25% import tax next week, with exemptions for models built in the United States.
- Explaining the step, he accused the EU of failing to honor a trade deal, while a senior European lawmaker called the move unacceptable and the reported agreement has not fully taken effect.
- The legal footing is uncertain because the Supreme Court in February 2026 struck down most of the president’s earlier tariffs under a 1977 emergency‑powers law and opened the door to refunds for duties already paid.
- Trump pointed to a trade gap as justification, with U.S. goods imports from the EU reported at about $606 billion last year compared with $370 billion in exports to Europe.
- The action fits a broader tariff push that included an April plan for a 10% levy on most imports and an earlier warning of a 30% EU tariff starting August 1 if no agreement is reached.