Tipsheet

President Trump Announces a 25 Percent Tariff on the EU After Trade Agreement Violations

President Trump announced on Friday that he will impose a 25 percent tariff on the European Union, after it reportedly failed to comply with the trade agreement reached in July 2025.

"I am pleased to announce that, 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. The Tariff will be increased to 25%," the president wrote on Truth Social. "It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF. Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing. These Plants, staffed with American Workers, will be opening soon — There has never been anything like what is happening in America today! Thank you for your attention to this matter. President DONALD J. TRUMP."

Under the original trade agreement, the EU agreed to reduce its tariffs on U.S.-built cars to zero, while the U.S. would impose a 15 percent tariff on EU-imported cars. However, according to the president, the EU has not fully implemented the tariff reduction and is still effectively restricting U.S. cars, and especially trucks, in practice.

The EU has yet to respond to the tariff increase.