Trump to Raise EU Car Tariffs to 25%
The escalation from a 15% ceiling agreed last year appears to violate the Turnberry Agreement, with Germany's auto industry expected to bear the heaviest impact as US factories remain exempt.
May 1st 2026 · Germany
President Donald Trump announced Friday that he will raise tariffs on cars and trucks imported from the European Union to 25% starting next week, accusing the bloc of failing to comply with a trade agreement reached last summer. In a post on his Truth Social platform, Trump stated the increase would take effect soon, though he did not provide specific details about what provisions the EU had violated. The announcement marks a significant escalation from the 15% tariff ceiling established under the Turnberry Agreement, named after Trump's golf course in Scotland, which was negotiated with European Commission President Ursula von der Leyen last July. The tariff hike follows renewed criticism of German Chancellor Friedrich Merz by Trump a day earlier, when he told the German leader to focus on ending the Ukraine war rather than "interfering" on Iran. Germany would likely bear the brunt of the increased duties, as it accounts for a substantial portion of EU auto exports to the United States. Trump separately mentioned that the new tariffs would not apply to European companies manufacturing vehicles in the US, noting that factories currently under construction represent more than $100 billion in investment. The status of the 2025 trade deal had already been cast into doubt following a Supreme Court ruling this year that determined Trump lacked the legal authority to declare an economic emergency and impose tariffs on EU goods under emergency powers. That ruling reduced the effective tariff rate from the agreed 15% to 10% as the administration pursued new import charges based on alternative legal authorities. Trump also referenced separate tariffs on Scottish whiskey, describing the move as a tribute to the King and Queen of the United Kingdom following their recent visit to the White House.