Donald Trump has announced that he is tearing up part of the tariff agreement he reached with European Union leaders last summer at his golf course in Scotland, accusing Brussels of failing to ratify the deal in a timely manner. In a move that blindsided European officials late on Friday, a public holiday in much of Europe, the US president declared that tariffs on cars and lorries imported from the EU would increase from 15% to 25% starting next week.
Details of the Tariff Increase
Writing on Truth Social, Trump stated: “I am pleased to announce that, based on the fact the European Union is not complying with our full 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.” Vehicles manufactured in the US by EU companies will be exempt from the hike. In a follow-up comment, the president appeared to reference EU promises of investment, noting that “many automobile and truck plants are currently under construction with 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.”
EU Response
Bernd Lange, the German MEP who chairs the European Parliament’s international trade committee, condemned the move. “This latest move demonstrates just how unreliable the US side is. This is no way to treat close partners,” he said. “Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position.” Although the European Parliament voted at the end of March to advance the deal, it has not yet been formally signed off through the so-called “trilogue” process, which requires signatures from the European Commission, the European Council, and the Parliament. The EU is expected to launch an intense diplomatic effort to salvage the agreement. The European Commission declined to comment specifically on the increased auto tariff but reiterated its commitment to last year’s deal and stated it would keep its “options open to protect EU interests.”
Broader Context
The tariff announcement comes amid a series of confrontational moves by Trump, who recently threatened to withdraw US troops from Italy and Spain, following a suggestion that he might reduce the number of troops stationed in Germany. When asked on Thursday whether he would consider pulling troops from Italy and Spain, Trump told reporters: “Probably … look, why shouldn’t I? Italy has not been of any help to us and Spain has been horrible, absolutely horrible.” The development also follows a three-day trip to Washington by European Commission Vice-President Maroš Šefčovič, who met with key Trump administration officials including Commerce Secretary Howard Lutnick, US Trade Representative Jamieson Greer, and Treasury Secretary Scott Bessent. That visit was the first since the July EU-US tariff deal was signed. Additionally, the European Parliament had twice paused the ratification process: once in January in protest at Trump’s threat to take over Greenland from Denmark, and again in February following an adverse US Supreme Court ruling.
Background of the Turnberry Deal
The original agreement, known as the Turnberry deal, established a 15% tariff on most EU goods, including cars, which had previously faced a proposed 50% tariff. After heavy lobbying from the EU, German car manufacturers, and German Chancellor Friedrich Merz, Trump agreed to include cars in the 15% baseline rate. However, 50% tariffs on steel remained, and in exchange, the EU committed to purchasing $750 billion worth of US energy and making $600 billion in US investments. A European Commission spokesperson stated: “The EU is implementing its joint statement commitments in line with standard legislative practice, keeping the US administration fully informed throughout. We maintain close contact with our counterparts, including as we also seek clarity on US commitments. We remain fully committed to a predictable, mutually beneficial transatlantic relationship. Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.”
