The US president will increase tariffs on cars and trucks from the European Union by 25%, which he accused of failing to comply with the trade agreement reached last August. That statement was denied by the bloc, which said it kept "all options open to protect" its interests. The measure further strains ties between Washington and Brussels and may impact a global economy affected by the war in the Middle East.

First modification: 05/02/2026 - 02:15Last modification: 05/02/2026 - 02:18

With attention focused on whether or not the United States resumes its large-scale attacks on Iran, Donald Trump decided to reignite another type of conflict: his trade war with the European Union.

This Friday, May 1, the US president announced that he will increase tariffs on European cars and trucks by up to 25%, an action justified by the alleged breach of the trade pact, which set tariffs at 15%.

Although he did not detail how he considers that the EU did not respect what was signed, the president suggested that the higher rates would push European manufacturers to accelerate the transfer of their production to the United States because, if they do, they will not be subject to the penalties.

"We have a trade agreement with the European Union. They were not complying with it. So I raised the tariffs on cars and trucks to 25%, which represents billions of dollars entering the United States, and forces them to considerably accelerate the movement of production from their factories," he told reporters at the White House.

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Trump's accusations were flatly rejected by the Group of Twenty-seven. In a statement, the European Commission assured that the bloc "is implementing its commitments" in line "with standard legislative practice" and "keeping the US administration fully informed at all times."

"We remain fully committed to a predictable and mutually beneficial transatlantic relationship. In the event that the United States adopts measures incompatible with the Joint Declaration, we will keep all our options open to protect the interests of the EU," warned the Commission, which also called for "clarity on Washington's commitments."

In the pact – announced in a Joint Declaration on August 21, 2025 and known as the Turnberry Agreement, after the name of Trump's golf course in Scotland – the European Union accepted a 15% tariff on most European products, in exchange for the United States exporting most of its products at 0%.

Read alsoWhy do various European leaders reproach the agreement on 15% tariffs with the US?

However, last February, the US Supreme Court invalidated many of the tariffs imposed by Trump, considering that he did not have the legal authority to do so. Faced with this, the Republican appealed to alternative legal means to impose a new global tariff of 10%, which in theory must be ratified by Congress in July.

Slow implementation of the agreement irritates Trump

Without elaborating on his reasons, Trump accused the European Union of not respecting the trade agreement "as usual."

Kelly Ann Shaw, one of the Republican's top business advisers in his first term and now a partner at the law firm Akin Gump Strauss Hauer & Feld told Reuters that slow progress in the implementation of the pact by the European Union led to an inevitable breakup.

And the member states must still ratify the text, after the European Parliament has requested a series of safeguards that allow the agreement to be suspended if Trump advances with new tariffs on the community bloc or if it threatens its territorial integrity, as happened in January when he expressed his desire to take control of the island of Greenland.

Despite these obstacles, the European Executive and Legislature plan to complete the implementation of the agreement next June.

Still, Shaw stressed that "the United States effectively implemented the Turnberry Agreement in August, and almost a year later, we still have not seen the EU reduce a single tariff."

But speaking to Reuters, Bernd Lange, head of the European Parliament's International Trade committee, called Trump's behavior "unacceptable."

"This latest measure demonstrates the unreliability of the United States. We have already witnessed these arbitrary attacks by the US in the case of Greenland; this is not the way to treat close partners. Now we can only respond with the utmost clarity and firmness, making use of the strength of our position," he stressed.

One more blow to a battered economy

Trump's announcement caught representatives of the automotive industry off guard, who called for avoiding a further escalation in the trade confrontation.

The president of the German Automotive Industry Association (VDA), Hildegard Müller, urged Washington and Brussels to engage in quick talks and honor existing agreements, while warning that additional tariffs will cause huge costs that will likely also impact American consumers.

For her part, Jennifer Safavian, CEO of Autos Drive America – which represents the US operations of foreign automakers – said the new levies "would threaten the progress that has already been made to open EU markets and grow the US auto industry."

Following the announcement, Ford Motor shares fell as much as 2.4% on the New York Stock Exchange, while Stellantis fell as much as 3.3% and General Motors sank 1.5%.

In a more confrontational tone, Marcel Fratzscher, president of the DIW economic institute, demanded that Berlin and Brussels show "once and for all firmness and stand up to Trump." For the German economist cited by Reuters, the EU must impose retaliatory tariffs on American technology companies because "only then can a continued escalation be avoided."

Likewise, the announcement of tariffs threatens to deal another blow to a world economy hard hit by the war started by the United States and Israel against Iran, which has led to the increase in oil and natural gas prices due to the closure of the Strait of Hormuz.

Thus, Trump's bet is risky when Americans already question his handling of the high cost of living. Controlling inflation was one of the main cards of the Republican's campaign, but in March the annual price index reached 3.3%, above the figure he had inherited.

Against this backdrop, the latest survey by the NORC Public Affairs Research Center and The Associated Press agency showed that only 30% of Americans surveyed approved of Trump's economic management. Failure to change this trend could jeopardize the results of the Republican Party in the midterm legislative elections, scheduled for November.

The relationship between Washington and Brussels, at its lowest point

The threat of new tariffs only adds pressure to frayed relations between the United States and the European Union.

Added to the trade push and pull, at the beginning of the year was Trump's manifest intention to take control of Greenland and, later, the US president's reproaches to his NATO allies, especially the European ones, for not providing sufficient support in their war against Iran or in the creation of a coalition to reopen the Strait of Hormuz.

Ryan Majerus, a former official at the US Department of Commerce, told Reuters that this move by the head of the White House "is not going to sit well with the EU."

"I'm not sure the administration cares, because they are incredibly hostile to the EU," Majerus added.

Meanwhile, Scott Lincicome, an analyst at the libertarian Cato Institute Center for Trade Policy Studies, criticized Trump's warnings as "just another example of why these trade agreements are smoke."

"They are all based on handshakes, winks and the hope that Trump won't get angry about something," he said.

With Reuters, AP and EFE

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