WASHINGTON – President Donald Trump threatened to raise tariffs on EU cars in retaliation for what he alleges is the EU’s failure to abide by a trade deal.
Trump said on social media on May 1, “I am pleased to announce that, based on the fact that the European Union is not fully adhering to our agreed-upon trade agreement, next week I will increase tariffs from the European Union on cars and trucks coming into the United States.” “Tariffs will be increased to 25%.”
Trump did not specify which law he would use to impose the tariffs. The Supreme Court in February overturned his emergency tariffs on imports from other countries, but he has vowed to impose tariffs under other laws, which typically come after the president investigates unfair trade practices rather than on his own.
Trump imposed a temporary 10% tariff worldwide following the Supreme Court decision.
US Trade Representative Jameson Greer is in the middle of two sets of hearings on proposed tariffs for countries with excess production facilities and countries that allow forced labour.
Trump announced a trade deal with the European Union in July, just days before his deadline. He met the President of the European Commission, Ursula von der Leyen, during a visit to Scotland, where the pair discussed terms and reached an agreement on a 15% tariff on most European exports to the United States.