The US announced potential 25% tariffs on imported cars and trucks from the EU, citing a lack of reciprocal action following a 2025 trade agreement.
US Announces Potential Tariffs on EU Autos
US Trade Representative Jamieson Greer confirmed Monday that the United States will implement a 25-percent tariff on imports of cars and trucks from the EU. Despite ongoing consultations with Brussels, Greer emphasized that tariffs on automobiles are just the beginning of escalating trade tensions with the Union.
Background: The 2025 Turnberry Agreement
The decision, initially announced by President Donald Trump on Friday, stems from the EU’s failure to fulfill the terms of an agreement reached in the summer of 2025 in Turnberry, Scotland. Under the agreement, the US lowered tariffs on European cars from 25 to 15 percent, while the EU committed to zero tariffs on industrial goods and simplified regulations favorable to American firms.
US Accusations of Non-Compliance
“They haven’t done any of that,” Greer stated in an interview with CNBC, adding that legislative work in the European Parliament to ratify the agreement is progressing “very slowly,” and proposed amendments would limit American exports.
The President determined that if Europeans were not implementing the agreement, the US did not need to implement it in full after many months of discussions, according to Greer.
Trump’s Tariff Announcement and Implementation
Trump announced Friday that he would introduce new tariffs this week, but has yet to sign the relevant documents.
Broader Trade Concerns
Greer stressed that the auto tariffs are “just one element” of a larger trade dynamic. He indicated contact with European and German trade officials over the weekend to explain the rationale behind the tariff decision and reiterate previous discussions regarding EU compliance with the agreement.
Anticipated Expansion of Tariffs
A US official anticipates the conclusion of proceedings regarding unfair trade practices by the European Union by summer, which is expected to serve as a basis for increasing tariffs on EU products.
Historical Tariff Context
The Turnberry agreement stipulated a maximum rate of 15 percent on nearly all goods from the EU, but tariffs were lowered after the Supreme Court deemed most of Trump’s tariffs illegally imposed. Trump subsequently introduced temporary global 10-percent tariffs, which are in effect until July of this year.
EU Rejection of US Claims
The European Commission rejected accusations of failing to meet the terms of the agreement. Bernd Lange, Chairman of the European Parliament’s trade committee, countered that the US side has repeatedly violated the agreement, citing, for example, the increase in tariffs on metals to 50 percent, introduced in August of last year. He also described Trump’s actions as evidence of the “instability” of the US as a trading partner.
