US President Donald Trump announced on Friday that he would raise tariffs on vehicles imported from the EU to 25 per cent, accusing the bloc of failing to comply with a trade deal.
In a post on Truth Social, the US President said the measure would take effect next week.
“Based on the fact the European Union is not complying with our fully agreed to trade deal, next week I will be increasing tariffs charged to the European Union for cars and trucks coming into the United States,” he wrote. “It is fully understood and agreed that, if they produce cars and trucks in USA plants, there will be no tariff."
Speaking to reporters as he was leaving the White House, Mr Trump accused the EU of failing to adhere to an agreement struck last year. With the new tariffs, "that's billions of dollars coming into the United States, and it forces them to move their factory production much faster", he added.
In July, Mr Trump and European Commission President Ursula von der Leyen agreed to a trade framework that set a 15 per cent tariff on most EU goods, including cars, semiconductors and pharmaceuticals. The rate was half of what Mr Trump had previously threatened to impose on imports from the bloc.
Under the deal, the EU also committed to purchasing large volumes of US energy and weapons, while American exports to Europe would face no tariffs.
The announcement comes amid the conflict in Iran, which has contributed to rising tension between Washington and European states over trade, security and energy policy.
