Overview
- President Trump, who announced the move Friday, said the 25% rate will start next week and that vehicles assembled in U.S. factories will be exempt.
- He framed the step as a response to EU noncompliance with the 2025 Turnberry deal, which set a 15% ceiling on most tariffs and is still moving through EU approval with safeguard clauses.
- The announcement did not name a legal basis, a key question after the Supreme Court limited his use of emergency powers for tariffs and as officials explore other trade laws.
- European automakers that import many models from Europe, including Mercedes, BMW and Volkswagen, face the greatest hit, while buyers in the U.S. could see higher prices or fewer choices if costs rise.
- EU-U.S. trade totaled about €1.7 trillion in 2024, so any escalation could have wide effects, and Brussels has signaled it expects Washington to honor the deal as it weighs how to respond.