The European Union has warned it is prepared to take action if the United States proceeds with plans to increase tariffs on EU car imports to 25%.
The warning follows comments by US President Donald Trump, who said the tariff hike could be announced next week, accusing the EU of not fully complying with a 2025 bilateral trade agreement.
The current agreement caps US tariffs on EU automotive imports at 15%.
A European Commission spokesperson said:
- The EU remains committed to the existing agreement
- Brussels is fulfilling its obligations under the joint framework
- “All options remain open” to protect EU interests if new measures are imposed
The dispute adds further uncertainty to transatlantic trade relations, especially for the automotive sector.
The announcement comes amid already declining German investment in the United States due to trade uncertainty.
VietnamSteel by Hoa Sen Group
