Trump to hike tariffs on EU aars and trucks amid trade dispute

WEB DESK: President Donald Trump has announced plans to significantly increase tariffs on cars and trucks imported from the European Union, claiming Brussels has failed to honour a previously agreed trade deal.

In a statement posted on Truth Social on Friday, the President declared that the levies would rise to 25pc starting next week, according to The New York Times.

The move marks a sharp reversal from a prior agreement where the United States had lowered auto tariffs for the EU to 15 per cent. US officials have expressed frustration, alleging that the European Union has been far too slow in implementing the terms of the accord.

Legal grounds for new levies

While the US Supreme Court recently moved to limit the President’s power to use emergency laws for imposing tariffs, these specific measures against European vehicles appear to be legally insulated.

The new tariffs are being issued under Section 232 of the Trade Act of 1964, a national security-related law that remains unaffected by the court’s February ruling.

This legal pathway allows the administration to bypass certain restrictions that had previously curtailed the President’s use of broad trade barriers.

Impact on European manufacturers

The escalation has sparked concern across the continent, as a higher tariff could prove devastating for European carmakers.

These manufacturers now face significantly steeper barriers to the American market compared to competitors in Japan, South Korea, and Mexico.

Responding to the announcement, Olof Gill, a spokesman for the European Commission, defended the EU’s progress, stating that the bloc is implementing its commitments in line with standard legislative practices.

He further warned that should the United States violate the existing agreement, the EU would keep its options open to protect its interests.