Trump Cranks Up The Tariffs On European Cars—Again
The Trump administration is once again turning the screws on imported vehicles, announcing a return to 25% tariffs on cars and trucks coming from the European Union.
President Donald Trump described the move as a reaction to the EU’s failure to meet the terms of a 2025 trade framework negotiated between the two sides. In a social media post—the president's preferred form of governance—Trump accused the EU of “not complying with our fully agreed to Trade Deal”, without providing proof. Trump added that he “fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF”.
The new flash point is rooted in the 2025 U.S.-EU trade framework—known as the Turnberry Agreement. Negotiated between Trump and European Commission President Ursula von der Leyen, the deal set a 15% tariff ceiling on most goods, including automobiles.
The EU believed the bilateral deal would help save European automakers some $585 million to $700 million per month. Relief that was desperately needed if you've been paying attention to automaker earnings reports at all this year.
It seems Trump is going after the agreement now, following a U.S. Supreme Court ruling that limited the administration’s authority to impose tariffs under emergency economic powers. That decision effectively lowered the tariff ceiling to 10%. Following the decision, the American government is expected to start issuing an estimated $166 billion in tariff refunds to companies that directly paid the duties.
“A deal is a deal,” the European Commission said in February after the Supreme Court ruling. “As the United States’ largest trading partner, the EU expects the U.S. to honor its commitments set out in the Joint Statement -- just as the EU stands by its commitments. EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”
It's expected that the new tariff rate will go into effect next week.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, went over the wall during the Rolex 24, and wrenched in the intense IndyCar paddock.
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Reciprocal tariffs, problems solved.
Once again, fear and loathing out of Canada. Maybe call your PM and tell him to get his head out of his @ss. The USA warned Canada and others you aren't tarffing our exports anymore without reciprocal tariffs. Get over it!