President Trump said on Friday he would increase tariffs on cars and trucks from the European Union to 25%, saying the bloc had not complied with its trade deal with Washington.
"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. "It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF. We have a trade deal with the European Union. They were not adhering to it. So I raised the tariffs on cars and trucks to 25%, that's billions of dollars coming into the United States, and it forces them to move their factory production much faster."
The Trump administration last year imposed a 25% tariff on global automotive imports under a national security trade law, but reached a deal with the EU in August to lower those duties to a net 15%, inclusive of prior duties.
In exchange, the EU agreed to eliminate duties on U.S. industrial goods, including autos, and accept U.S. safety and emissions standards on vehicles.
Although EU lawmakers advanced legislation in March to implement the tariff reductions, they continue to drag their feet.