President Donald Trump said he plans to raise tariffs on cars and trucks imported from the European Union to 25% next week.
Loading audio narration…
In a Friday post on Truth Social, Trump said the EU is “not complying with our fully agreed to Trade Deal,” and added that automakers could avoid the tariffs if they produce vehicles at plants in the United States.
The move would raise tariffs from levels outlined in a 2025 US-EU trade framework, agreed to in July 2025, which set a 15% ceiling on most goods. That agreement has been the subject of ongoing disputes over how its terms are implemented. Trump didn’t clarify what tariff authority he plans to use for the higher rates.
Representatives for the largest EU automakers — VW, BMW, Mercedes-Benz, and Fiat’s parent company Stellantis — didn’t immediately respond to a request for comment from Business Insider.
The auto industry has been a central focus of Trump’s trade agenda. He has previously considered using Section 232 of the Trade Expansion Act — a national security provision — to impose tariffs on imported vehicles and parts.
Those potential tariffs are separate from the IEEPA duties Trump imposed during “Liberation Day,” which were struck down by the Supreme Court earlier this year.
Automakers have said they paid billions of dollars on those tariffs, too, before the Supreme Court stepped in. General Motors said it expects a roughly $500 million refund following the ruling, while Ford booked a $1.3 billion one-time tariff-related benefit.
In the post on Friday, Trump said that several automotive plants are “currently under construction” and that the factories would be “staffed with American workers.”
Automakers have been spending billions of dollars on new US facilities and reworking existing plants to build more of their top-selling vehicles domestically.
Volkswagen, for example, is ending production of the electric ID.4 at its Tennessee plant and shifting the factory to build the higher-selling Atlas SUV. GM also recently confirmed to Business Insider a $340 million investment in two US propulsion plants to expand production of gas-powered trucks, SUVs, and the Chevrolet Corvette. The company said it does not expect to increase hiring as a result of the investment.
