BackECONOMY
Trump says tariff on European cars and trucks to rise to 25%
President Donald Trump announced on Truth Social that tariffs on European cars and trucks will rise to 25%, effective next week, citing EU non-compliance with a previously agreed trade deal. He claimed there will be no tariffs on vehicles produced in U.S. plants, highlighting large domestic investment. The statements come amid ongoing questions about the Turnberry Agreement and related court rulings affecting the tariff framework.
Why It Matters
The move could heighten U.S.-EU trade tensions and impact automakers, supply chains, and consumer prices.
Timeline
3 Events
Trump announces 25% tariff on European cars and trucks, effective next week
May 1, 2026
On May 1, 2026, President Donald Trump posted on Truth Social that tariffs on European cars and trucks would be increased to 25%, with the new tariff taking effect the following week. He claimed the EU was not complying with the fully agreed-upon trade deal. He also said there would be no tariff for cars and trucks produced in U.S. plants, citing substantial domestic investment and new plants under construction.
February 2026 Supreme Court ruling on emergency tariffs
February 2026
The status of the 2025 deal was cast into doubt after the US Supreme Court ruled in February 2026 that the president lacked the legal authority to declare an economic emergency and charge tariffs on EU goods. The initial agreement had set a 15% tariff ceiling; the ruling reduced that to 10% as the Trump administration launched a new set of import taxes under other laws.
Turnberry Agreement reached between Trump and von der Leyen in July 2025
July 2025
The article notes that Donald Trump and European Commission President Ursula von der Leyen had agreed to the Turnberry Agreement trade deal last July, which set a 15% tariff on most goods.