President Donald Trump said the U.S. will raise tariffs on European Union automobiles to 25% from 15%, impacting companies such as Volkswagen AG ($VWAGY), Bayerische Motoren Werke AG ($BMWYY), and Mercedes-Benz Group AG ($MBGYY), citing non-compliance with a previously agreed trade deal.
- Trump said the tariff increase will take effect next week and applies to cars and trucks imported from the EU
- The rate was previously reduced to 15% under a 2025 trade agreement between the U.S. and EU
- The EU is still finalizing legislation to implement its side of the agreement amid internal negotiations
- Vehicles manufactured in U.S. plants would not be subject to the tariffs
- The tariffs are imposed under Section 232 national security authority, allowing unilateral adjustments
- EU auto exports to the U.S. account for roughly 20% of total exports and fell 21% in 2025
- European officials criticized the move, arguing the U.S. has breached prior commitments
- Automakers have been considering expanding U.S. production to mitigate tariff exposure
Relevant Companies
- None found
Editor’s Note: This is a developing story. This article may be updated as more details become available.
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