WASHINGTON: US President Donald Trump has announced plans to impose a 25% tariff on cars and trucks imported from the European Union, potentially as early as next week. He accused the bloc of failing to uphold a previously agreed trade arrangement.
He said vehicles assembled within the United States will be exempted from the proposed higher duties, a move he described as both a corrective trade measure and an incentive for automakers to expand domestic production.
In a post on Truth Social, he also highlighted a surge in US industrial investment, claiming that more than $100 billion is being directed toward new automobile and truck manufacturing facilities across the country.
“I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States. The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” he said.
“I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States. The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF.” – President… pic.twitter.com/7vC3Nh7iPD
— The White House (@WhiteHouse) May 1, 2026
He further stated that the scale of expansion in the auto sector is unprecedented, with multiple plants currently under construction and expected to become operational soon, creating jobs for American workers.
“Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing. These Plants, staffed with American Workers, will be opening soon — There has never been anything like what is happening in America today! Thank you for your attention to this matter,” his post said.
Donald Trump’s remarks refer to a trade agreement reached last July with the President of the European Commission, Ursula von der Leyen, under which both sides agreed to ease tariff tensions and set a baseline duty of roughly 15% on a wide range of goods.
The deal was viewed as a temporary stabilisation effort following months of transatlantic trade friction, particularly in key sectors such as automobiles, steel, and industrial products, after an escalation triggered by Trump’s reciprocal tariff measures.
