President Donald Trump said he will impose a 25 percent tariff on cars and trucks from the European Union, accusing the bloc of failing to comply with a prior trade agreement, as reported by Associated Press. The move is set to take effect next week and could further strain global markets.
The report said the earlier deal with European Commission, led by Ursula von der Leyen, capped tariffs at 15 percent. However, a recent Supreme Court ruling challenged the legal basis for those measures, prompting the administration to pursue alternative tariffs.
Trump says he'll place 25% tariff on autos from EU, accusing bloc of not complying with trade deal https://t.co/YO5wJRVoLn
— CTV News (@CTVNews) May 1, 2026
The decision comes amid economic uncertainty driven by the Iran conflict and rising energy costs linked to disruptions in the Strait of Hormuz.
European officials warned the move could undermine trade commitments. The report said EU-US trade remains significant, valued at roughly $2 trillion annually, raising concerns about broader economic fallout.
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