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Trump threatens 25% EU car tariffs, EU pushes 15%

5/5/2026

42 3 Full Breakdown

Summary

Story summary

U.S. President Donald Trump threatened 25 percent tariffs on EU cars, above 15 percent ceiling.
EU officials met in Paris to discuss threat and preserve 15 percent rate.
European Commission President Ursula von der Leyen said the U.S. is bound by the 15 percent cap.
Maroš Šefcovic will meet U.S. Trade Representative Jamieson Greer on the G7 sidelines in Paris.
German economists say the tariff rise could cut Germany’s output by about 0.3 percent.

History

Historical Context

In 1981 the Reagan administration secured a voluntary export restraint that capped Japanese car shipments at 1.67 million units, and in 1983 imposed a 45 percent tariff on heavyweight motorcycles after Harley-Davidson’s petition. The 2024 Trump proposal to levy a 25 percent tariff on EU automobiles revives that early-80s trade-pressure tactic, drawing criticism from European Commission President Ursula von der Leyen.

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Story summary

U.S. President Donald Trump threatened 25 percent tariffs on EU cars, above 15 percent ceiling.
EU officials met in Paris to discuss threat and preserve 15 percent rate.
European Commission President Ursula von der Leyen said the U.S. is bound by the 15 percent cap.
Maroš Šefcovic will meet U.S. Trade Representative Jamieson Greer on the G7 sidelines in Paris.
German economists say the tariff rise could cut Germany’s output by about 0.3 percent.

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