Trump Slaps 25% Tariffs on European Cars, Trade War Heats Up Again

President Donald Trump announced he will raise tariffs on European Union cars and trucks to 25%, up from 15%, accusing Brussels of failing to honor a 2025 bilateral trade agreement. The increase is set to take effect within days and will apply to major manufacturers including Volkswagen, BMW, and Mercedes-Benz.

“The EU is not complying with our fully agreed to Trade Deal,” said Trump, announcing plans to raise tariffs on European auto imports to 25%.

The announcement carries a legal dimension that has received less attention than the trade rhetoric. Earlier in 2026, the U.S. Supreme Court ruled against the administration’s legal authority for the original 15% auto tariffs, compelling the White House to seek substitute statutory grounds before reimposing and raising the duties. The ruling effectively reset the legal clock on Trump’s tariff architecture, though the administration moved quickly to fill the gap.

Trump framed the new rate in explicitly industrial terms. He said the tariffs would force European automakers to move factory production to the United States “much faster” and claimed the measures would generate billions in revenue for the federal government.