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President Donald Trump announced Friday that the United States will raise tariffs on European cars and trucks entering the country to 25%, citing what he described as the European Union’s noncompliance with the U.S.-EU trade deal. Trump said the tariff increase would take effect next week and that it could be avoided if European companies agree to manufacture vehicles in the United States.
In a Truth Social post, Trump said: “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%.”
Trump also indicated the tariffs would be dropped if European companies produce cars and trucks in U.S. plants. “It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” he wrote.
The U.S. and EU reached a landmark trade deal in July, under which Trump agreed to lower tariff rates on EU cars and trucks from 27.5% to 15%.
Speaking to reporters at the White House on Friday, Trump reiterated that the tariff increase was tied to the EU’s adherence to the trade agreement. “We raised the tariffs on cars coming in from the European Union because the European Union was not adhering to the trade deal we have,” he said.
Trump added that if European manufacturers build plants in the United States—describing these investments as “over $100 billion” across countries—tariffs would not apply when those plants open.
Trump also pointed to ongoing U.S. vehicle manufacturing investment, saying the U.S. has “over $100 billion of car plants being built,” which he described as a record. He said plants are being built by companies from multiple countries, including Japan, South Korea, and others.
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