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U.S. to Raise EU Car and Truck Tariffs to 25% With Exemption for U.S.-Built Models

The move tests a fragile trade deal the European Union put on hold in January.

Overview

  • President Donald Trump announced a jump in tariffs on EU-made cars and trucks from 15% to 25%, saying the change will take effect next week.
  • Trump said the increase responds to what he called EU noncompliance with a bilateral pact and he added that vehicles built in American factories will face no import tax.
  • European reaction was swift, with Bernd Lange of the European Parliament’s trade committee calling the plan unacceptable and saying the United States is an unreliable partner.
  • The 2025 agreement set a 15% baseline on most EU goods, yet EU leaders paused approval in January 2026 after earlier U.S. tariff moves tied to other disputes.
  • The announcement came in a short post on Truth with few details, leaving questions on scope and enforcement as automakers brace for possible price hikes and supply shifts.