Overview
- President Trump, who announced the change Friday, plans to raise import taxes on cars and trucks from the European Union to 25% starting next week.
- He said the EU is not complying with last year’s Turnberry trade deal and noted that vehicles built in U.S. plants would be exempt to push more production stateside.
- He did not specify what legal authority would be used for the increase, a key question after a February Supreme Court decision curtailed his ability to impose broad tariffs under emergency powers.
- European institutions have stressed that the Turnberry ceiling of 15% must stand and have warned they are prepared with countermeasures if Washington raises rates.
- Auto makers could see uneven effects and higher costs, with Stellantis shares slipping and firms with U.S. assembly like Volkswagen, Mercedes‑Benz and BMW partly insulated, which could still mean pricier models for American buyers.