EU Car Tariffs: A Brewing Trade Tension
EU officials are weighing counter-tariffs and export restrictions after Trump’s tariff threat raised doubts about a July 2025 trade deal, Bernd Lange said.
- Starting Monday, the United States increased tariffs on passenger vehicles imported from the European Union to 25 percent, up from 15 percent, as President Donald Trump justified the move citing non-compliance with a July 2025 trade agreement.
- Trump's decision follows German Chancellor Friedrich Merz's criticism of the U.S. war in Iran, with the president targeting German automakers after allies refused to support naval operations in the Strait of Hormuz.
- Retaliatory options, including counter-tariffs, are now 'on the table' according to German MEP Bernd Lange, as European Parliament members previously added 'sunrise' and 'sunset' clauses to safeguard the trade deal.
- Market watchers warn the EU tariff hike sets a precedent for other U.S. partners, heightening concerns that Hyundai Motor Group could face similar pressure due to Seoul's refusal to support military actions against Iran.
- To evade unceasing tariff risks, Hyundai Motor Group Executive Chair Chung Euisun intends for 80 percent of U.S. sales to be produced locally by 2030, according to Kim Pil-soo, a professor of automotive technology at Daelim University.
32 Articles
32 Articles
The European stock exchanges closed down on Mondays, on the basis of commercial and geopolitical tensions, after Donald Trump announced his intention to increase tariffs for car imports from the European Union to 25%, CNBC broadcasts.
‘Nothing changes’ — but what’s the point of a trade deal with Trump?
The EU Commission insists that Donald Trump's latest threat of 25-percent tariffs on EU car exports 'changes nothing'. But is a US trade deal viable when the president changes his mind on a daily basis?
Donald Trump turns on the customs screw and Merz blames the EU. 25 percent of European cars would hit Germany hard above all, in Brussels the desire for retaliation is growing. What could it look like?
EU Vows Action If Trump Adopts Car Tariffs, But Urges Restraint
Europe will consider all retaliatory options should US President Donald Trump follow through on his threat to raise tariffs on cars and trucks from the European Union to 25%, the bloc’s finance ministers said.
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