WASHINGTON (Kashmir English): In a sharp escalation of transatlantic trade tensions, US President Donald Trump has announced a 25% tariff on cars and trucks imported from the European Union, set to take effect next week.
The announcement was made via Trump’s social media platform, where he accused the EU of failing to fully implement an existing trade agreement. He said the move is aimed at protecting the domestic industry and encouraging European automakers to shift production to the United States.
According to the US president, vehicles manufactured within the country will be exempt from the new tariffs, effectively incentivising foreign companies to invest in US-based manufacturing facilities.
Trump claimed that over $100 billion has already been invested in new automobile and truck plants across the US, describing it as a record level of industrial expansion. He added that these facilities are expected to create jobs and strengthen the country’s manufacturing base.
The tariff hike comes amid ongoing disagreements over a US-EU trade deal that was originally intended to reduce trade barriers. Washington has expressed frustration over what it sees as slow or incomplete compliance by the EU.
The decision marks a return to higher tariff levels after earlier reductions, signalling a tougher stance in US trade policy toward Europe.
Economists warn that the move could strain relations between the US and the EU while disrupting the global automotive market. Both sides are key players in the sector, and the increase may trigger retaliatory measures.
Following the announcement, shares of major automakers declined, reflecting investor concerns about rising costs, supply chain disruptions, and the potential for a broader trade conflict.
Analysts say the tariff increase adds to global economic uncertainty, already heightened by geopolitical tensions and fluctuating energy prices.
