Trump Increases Tariffs on European Cars

On May 1, 2026, President Donald Trump intensified trade disputes with the European Union (EU) by announcing a hike in tariffs on cars and trucks imported from the EU, increasing them to 25%.

In his post on Truth Social, Trump asserted that this decision was warranted due to the EU’s failure to meet the terms of their trade agreement. This new tariff effectively revokes the 15% tariff limit that was set under the 2025 Turnberry Agreement, signaling a shift back to a more assertive “America First” approach to trade.

Notably, vehicles produced by European manufacturers in U.S. plants will remain exempt from these tariffs. Nevertheless, the industry is bracing for immediate price fluctuations and an expected push from the government for foreign automakers to increase production within the U.S.

“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%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” Trump stated.

In response to these developments, the European Commission emphasized that they would “keep our options open to protect EU interests” and requested more clarity from the U.S. regarding its commitments.

The Turnberry Agreement originated in Scotland in July the previous year, wherein a 15% tariff cap was set on most European imports in exchange for concessions from the EU. Under this deal, the EU had committed to abolishing tariffs on U.S. industrial goods, including cars, and aligning vehicle regulations with U.S. safety and emissions standards. However, even though the EU pushed forward legislation for these changes in March, final approval is still anticipated in June.

This delay appears to have prompted Trump’s recent tariff increase, with the U.S. administration arguing it indicates a lack of compliance from the EU.

Bernd Lange, the chairman of the European Parliament’s trade committee, denounced the announcement of the 25% tariffs as “unacceptable,” claiming that the U.S. has shown itself to be an unreliable partner by not adhering to the existing agreement.

“President Trump’s behaviour is unacceptable. This latest move demonstrates just how unreliable the US side is. We have already witnessed these arbitrary attacks from the US in the case of Greenland; this is no way to treat close partners,” Lange commented.

Previously, Trump had even threatened to annex Greenland, the self-governing territory of Denmark, although the European Parliament rejected a related trade deal in January.