Source : INDIA TODAY NEWS
US President Donald Trump on Friday announced that he would increase tariffs on cars and trucks from the European Union to 25 per cent starting next week, claiming the bloc was not complying with a trade deal agreed last year, though he did not specify his objections.
He added that EU carmakers would avoid the tariffs altogether if they manufactured their vehicles in the United States.
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Trump, who has frequently adjusted tariffs after returning to the White House in 2025, used the announcement to highlight his “Make in America” push, aimed at boosting domestic manufacturing by encouraging companies to set up production in the US.
“Many automobile and truck plants are currently under construction, with over $100 billion being invested — a record in the history of car and truck manufacturing. These plants, staffed with American workers, will be opening soon,” he posted on Truth Social.
The move comes months after Trump and European Commission President Ursula von der Leyen agreed to a new trade deal in July 2025, which set a 15 per cent tariff on most goods, including automobiles and auto parts.
Both sides had also reiterated their commitment to preserving the trade framework, known as the Turnberry Agreement, named after Trump’s golf course in Scotland.
However, the deal’s stability was thrown into question earlier this year when the Supreme Court of the United States ruled that the president lacked the legal authority to declare an economic emergency and impose tariffs on EU goods.
While the original agreement capped tariffs at 15 per cent, the ruling effectively lowered that ceiling to 10 per cent, prompting the Trump administration to explore alternative legal routes for imposing import taxes.
Trump’s latest move comes at a time when European economies are already under strain, with the ongoing Middle East conflict driving up energy prices.
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SOURCE :- TIMES OF INDIA
