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Trump Threatens 25% Auto Tariffs, EU Warns €15 B Loss

5/6/2026

Summary

Trump Warns Tariffs

U.S. President Donald Trump warned that U.S. tariffs on EU vehicles will rise from about 15% to 25%, threatening the 2025 U.S.–EU trade pact.
The European Union said it remains committed to the 15% cap and urged Washington to honor its obligations.
German Chancellor Friedrich Merz warned of up to €15 billion GDP loss and €2.6 billion profit cuts for automakers, while European car stocks fell 2%–3% and the auto index dropped.

Summary

Trump Imposes Tariffs

Following the Supreme Court’s February ruling that blocked the use of the International Emergency Economic Powers Act for reciprocal tariffs, President Donald Trump signed an order imposing a uniform 10% tariff on all imports.
Trump announced over $100 billion in new U.S. auto and truck plant investments, a record for the sector.
Eurogroup President Kyriakos Pierrakakis said dialogue is preferred but all options remain if the United States breaches the agreement.

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Trump Warns Tariffs

U.S. President Donald Trump warned that U.S. tariffs on EU vehicles will rise from about 15% to 25%, threatening the 2025 U.S.–EU trade pact.
The European Union said it remains committed to the 15% cap and urged Washington to honor its obligations.
German Chancellor Friedrich Merz warned of up to €15 billion GDP loss and €2.6 billion profit cuts for automakers, while European car stocks fell 2%–3% and the auto index dropped.

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