Overview
- Trump, who announced the change Friday, said the rate on EU cars and trucks will jump to 25% next week.
- Vehicles built in U.S. plants are exempt, a carve-out he framed as a push for European makers to expand American production.
- He did not cite a legal basis, a key omission after the Supreme Court in February rejected his use of IEEPA for tariffs and the White House shifted to a temporary 10% rate and new trade investigations.
- EU officials point to last July’s Turnberry Agreement that set a 15% ceiling on most goods, with the Commission reiterating that “a deal is a deal” as lawmakers warn of economic fallout.
- European automakers such as Mercedes, BMW and Volkswagen could face higher U.S. prices and disrupted supply plans, and companies are waiting for formal tariff orders as Brussels weighs possible responses.