The U.S. will raise tariffs on automobiles from the European Union to 25% from 15%, President Trump said Friday, as he accused the 27-nation bloc of not complying with a trade agreement it signed last year.
“I am pleased to announce that, 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,” Trump wrote on his Truth Social platform. “The Tariff will be increased to 25%.”
U.S. tariffs on EU automobiles were set at 15% last year as part of a trade agreement Trump signed with the EU in Scotland, which also reduced European tariffs and trade barriers on U.S. goods. European lawmakers are in the process of ratifying that treaty but haven’t yet codified it in law.
The U.S. hasn’t yet taken any official action to increase tariffs, and Trump often uses threats on his social-media platform as a way to gain concessions from trading partners. The White House didn’t specify the day that increased tariffs would go into effect or what EU officials would have to do to prevent the increase.
Trump undertook a similar tactic with South Korea last year, throwing its export-dependent auto industry into disarray. Korean auto exports long enjoyed essentially duty‑free access to the U.S., but Trump last year declared a 25% reciprocal tariff on autos and car parts from that country. After extensive back-and-forth negotiations, the rate was settled at 15%.
Trump has also routinely issued threats to significantly raise tariffs on a litany of European goods, from cars to wine and alcohol, throughout his second term. In many cases, those dust-ups were resolved with a phone call from European officials or a commitment to continue negotiations.
Lowering U.S. tariffs on automobiles to 15% was a central priority for European negotiators in trade talks throughout 2025. The bloc was initially subject to a 25% automotive tariff that Trump had imposed on national security grounds—a levy that European officials saw as unsustainable for their prized automakers. Reducing the levy to 15% put the EU on the same footing as other major auto exporting nations like Japan and South Korea, which also face 15% auto tariffs.
Trump’s automotive tariffs are imposed under Section 232 of the Trade Expansion Act of 1962, which allows for levies to be imposed on national security grounds. Those tariffs were unaffected by a recent Supreme Court decision striking down many of Trump’s other emergency levies, and the president can adjust them unilaterally if he feels there is a national security justification.
European cars represent only a fraction of total automobile sales in the U.S.—less than 700,000 out of more than 16 million cars sold in the American market annually. Nevertheless, the U.S. is a key market for many European automakers, particularly German brands like Volkswagen .
The U.S. is the second-largest market for European automotive exports, accounting for about a fifth of total exports, according to the European Automobile Manufacturers’ Association. EU auto exports to the U.S. dropped 21% in 2025, the trade group reported last month, which it attributed largely to Trump’s tariffs.
Trump’s levies have prompted some European automakers to consider starting or expanding production in the U.S., and Trump noted again on Friday that goods produced in the U.S. aren’t subject to tariffs. However, setting up new car plants is expensive and requires a certain production level to justify the cost.
Write to Gavin Bade at gavin.bade@wsj.com
