President Donald Trump announced on Friday that the United States will increase tariffs on cars and trucks imported from the European Union to 25% starting next week. This increase raises the current tariff level of 15% established under a trade agreement negotiated last July.
The president accused the European Union of failing to comply with the terms of the trade deal, which was struck with EU leaders, including Commission President Ursula von der Leyen, at his golf course in Scotland. Trump criticized Brussels for taking too long to ratify the agreement, stating that the bloc is not complying with the fully agreed deal.
The administration believes the higher tariffs will force European automakers to move their factory production to the United States more quickly. This move follows repeated verbal attacks on US allies and a previous Supreme Court decision that struck down reciprocal tariffs earlier this year.
The announcement was made on a public holiday in much of Europe, a move that could jolt the world economy at a fragile moment. Europe had previously warned that its trade deal with Washington could be in jeopardy.