Donald Trump again hits the European Union with a high-voltage trade threat. The President of the United States has announced that he will raise tariffs applied to European cars and trucks entering the US market to 25%, a measure that could come into effect next week and opens a new front of tension between Washington and Brussels.
The announcement came via Truth Social. Trump accused the European Union of not complying “in its entirety” with the trade agreement reached with the United States and assured that, for that reason, he will increase tariffs on cars and trucks coming from the bloc. “The tariff will increase to 25%,” wrote the US president.
Trump threatens 25% tariffs on EU cars and trucks
The measure would affect vehicles manufactured in the European Union and exported to the United States. Trump added a key exception: if cars and trucks are produced in plants located on U.S. territory, they will not be subject to the new tariff. The phrase fits the core of his industrial strategy: punish imports and reward manufacturing within the United States.
The announcement is especially delicate for the European automotive sector, which is already going through a stage of pressure due to the electric transition, Chinese competition, and regulatory changes. The United States is one of the largest markets for vehicles manufactured in Europe: according to the European employers' association ACEA, in 2024 the US market represented 22% of the value of new vehicle exports from the EU, with 757,654 units exported for a value of 38.9 billion euros.
A direct blow to the European automobile
The new tariff would be a direct blow to manufacturers such as Volkswagen, BMW, Mercedes-Benz, Audi, Porsche, Stellantis, or Volvo, although the impact will depend on where each model is produced. European brands with factories in the United States would be better protected for vehicles assembled there, while models imported from Europe would lose competitiveness due to the additional customs cost.
ACEA already warned in 2025 that Trump's tariffs could harm global manufacturers as well as the US industry itself, recalling that European groups have been investing in the United States for decades and employ a relevant portion of the international manufacturers' workforce in the country.
Trump's message, however, goes in the opposite direction: whoever wants to sell without tariffs, let them manufacture in the United States. It is pure protectionism, wrapped in industrial pressure.
The EU had just signed an agreement with the US on critical minerals
The announcement comes just a week after the United States and the European Union signed a memorandum of understanding in Washington to strengthen cooperation on critical minerals, a key sector for the technology industry, defense, semiconductors, and electric vehicles. The agreement was formalized by US Secretary of State Marco Rubio and European Commissioner for Trade Maroš Šefčovič.
That pact sought precisely to strengthen secure supply chains and reduce dependence on China, which dominates a good part of the global extraction and processing of critical raw materials. The signing of the memorandum seemed like a gesture of transatlantic strategic cooperation. Trump's announcement changes everything: cooperation on minerals now coexists with a direct tariff threat against one of Europe's most important industrial sectors.
Trump does not detail what Brussels fails to comply with
One of the most relevant points is that Trump has not precisely explained which part of the trade agreement he considers to be breached by the European Union. In his publication, he limits himself to stating that Brussels is not fully complying with the "fully agreed" pact, but does not detail whether he is referring to regulatory barriers, purchases, investments, access for American products, technical standards, or tariff commitments.
That void increases uncertainty. For Brussels, the threat can be read as a negotiating pressure maneuver. For companies, on the other hand, the problem is immediate: planning production, prices, logistics, and margins with a 25% tariff on the table.
What cars would be affected
The tariff announced by Trump would affect cars and trucks entering the United States from the European Union. That is, it would not be directed against the brand due to its origin, but against the place of production of the vehicle. A car of a European brand manufactured in a US plant would not pay the new tariff; one assembled in Europe and exported to the United States would be affected.
That distinction is key to understanding the real impact. Large European groups have an industrial presence in the United States, but not all their models are produced there. Vehicles with higher added value, certain premium ranges, or specific models imported from Europe could be especially vulnerable.