U.S. President Donald Trump said he is raising America’s import tariff on European motor vehicles to 25%.
“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… The Tariff will be increased to 25%,” said Trump on social media.
The tariff increase comes despite the fact that the U.S. Supreme Court ruled in February that most of Trump’s tariff regime is illegal.
Shortly after the Supreme Court ruling, Trump said he signed an executive order imposing a new 10% “global tariff” rate to effectively replace his previous duties.
However, Trump’s new tariffs come with a 150-day time limit under the Trade Act of 1974.
For its part, the European Union (EU) has said that it is following standard legislative practice regarding its current trade deal with America and keeping the Trump administration up to date.
Why exactly Trump is now increasing the automotive tariff applied to European-made vehicles isn’t clear.
The White House said on May 1 that Europe has “failed to make substantial progress on their agreed-upon commitments” under a trade agreement between the two countries.
European automakers that could be impacted by the tariff rate change include Volkswagen (VOW3) and Ferrari (RACE), among others.
