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Trump hikes EU car tariffs to 25% for relocation

5/2/2026

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Summary

Story summary

U.S. President Donald Trump announced that tariffs on cars and trucks from the European Union will rise to 25% next week.
Trump said the higher tariff is meant to force European car makers to relocate production to U.S. factories.
The 2025 U.S.-EU trade agreement had capped tariffs on most EU goods, including autos, at 15%.

History

Historical Context

In 1979 the oil crisis hurt U.S. automakers and spurred demand for fuel-efficient Japanese cars. In 1981 President Jimmy Carter secured a voluntary export restraint limiting Japanese shipments to 1.68 million vehicles, prompting firms such as Toyota and Nissan to open U.S. plants. Donald Trump’s 2024 call for 25 % tariffs on EU autos echoes that earlier strategy and could trigger WTO disputes.

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Story summary

U.S. President Donald Trump announced that tariffs on cars and trucks from the European Union will rise to 25% next week.
Trump said the higher tariff is meant to force European car makers to relocate production to U.S. factories.
The 2025 U.S.-EU trade agreement had capped tariffs on most EU goods, including autos, at 15%.

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