Donald Trump has announced plans to raise tariffs on cars and trucks imported from the European Union to 25%, marking a sharp escalation in transatlantic trade tensions. Trump accused the EU of failing to comply with a previously agreed trade deal but did not provide specific details to support the claim.

The European Commission responded cautiously, stating it remains committed to the agreement while seeking clarity from Washington. Officials warned they are prepared to take action to protect European interests if the new tariffs violate the deal. The automotive sector, a key pillar of Europe’s economy, is particularly vulnerable to such measures.

The move comes months after both sides agreed to a reduced tariff framework, following earlier threats of steeper duties. However, disputes over steel, aluminium, and geopolitical tensions have strained relations. Trump has also urged European manufacturers to shift production to the U.S., promising zero tariffs for vehicles made domestically.

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