WASHINGTON (AP) — President Donald Trump said on Friday that he will increase the tariffs charged on cars and trucks from the European Union next week to 25%, a move that could jolt the world economy.
Trump made the announcement during a meeting with reporters at the White House, accusing the EU of not complying with previous trade agreements. The new tariff would apply to all vehicles imported from EU member states, potentially affecting major automakers like Volkswagen, BMW, and Mercedes-Benz.
The European Commission responded by stating it would seek to negotiate a resolution but warned of retaliatory measures if the tariffs are implemented. The EU is the largest trading partner for the United States in terms of goods and services, and such a tariff could disrupt supply chains and increase prices for consumers.
Economists have expressed concern that the tariff could lead to a trade war, similar to the tensions seen during Trump's first term. The announcement comes amid ongoing discussions about trade imbalances and the future of transatlantic economic relations.
