US commerce coverage: Trump declares tariffs of 25 p.c on automobiles and vans – EU threatens countermeasures | EUROtoday

US President Donald Trump declares that he’ll improve tariffs on automobiles and vans from the European Union to 25 p.c. The cause is the EU’s “non-compliance with our fully agreed trade agreement,” as he introduced on his Truth Social platform.

“It is well known and agreed that there are NO TARIFFS on the production of cars and trucks in U.S. factories,” Trump added. “Numerous automobile and truck plants are currently under construction, with investments exceeding $100 billion – a record in the history of the automotive industry. These plants, which will employ American workers, will open soon.”

Trump and EU Commission President Ursula von der Leyen agreed on a commerce deal in July final yr. This set a tariff fee of 15 p.c for many items. But the deal’s standing was known as into query by a Supreme Court ruling in February, which dominated that Trump didn’t have the authority to declare an financial emergency to impose tariffs on EU items.

The tariff cap fell to 10 p.c as a result of the Trump administration imposed new tariffs primarily based on different legal guidelines. It is presently investigating commerce imbalances and nationwide safety dangers so as to introduce a brand new tariff regime that would in the end jeopardize the settlement with the EU.

After the Supreme Court ruling, Von der Leyen mentioned that the EU anticipated the US authorities, just like the EU, to stay to the commitments made in a joint declaration. “EU products must continue to receive the most competitive treatment, without increasing tariffs beyond the previously agreed clear and comprehensive cap,” she urged. “A deal is a deal.”

The worth of commerce in items and providers between the EU and the US amounted to 1.7 trillion euros in 2024, in keeping with the EU statistics company Eurostat, which corresponds to a mean of 4.6 billion euros per day. The EU has mentioned it expects the commerce take care of the US to save lots of European automobile producers about 500 to 600 million euros a month.

“We remain fully committed to a predictable relationship”

If Trump have been to boost US tariffs as introduced, the EU reserves the precise to take countermeasures. A spokeswoman for the EU Commission made this clear within the night in Brussels. “We remain fully committed to a predictable, mutually beneficial transatlantic relationship,” mentioned the spokeswoman. If the USA takes measures that contradict the frequent commerce settlement, it is going to reserve “all options to protect the EU’s interests”.

The spokeswoman assured that the European Union is implementing the commitments it has made in accordance with regular legislative follow and is all the time retaining the US authorities totally knowledgeable. “We are in close contact with our partners, also to gain clarity about the USA’s obligations.”

“The move shows how unreliable the US side is”

The chairman of the commerce committee within the EU Parliament, Bernd Lange, has sharply criticized the introduced tariffs on European automobiles. “This latest step shows how unreliable the US side is,” mentioned the SPD politician on Friday. This will not be the way you deal with shut companions. Trump’s habits is unacceptable. The European Union should now reply with utmost readability and willpower from a place of energy, demanded Lange. While the EU is adhering to the so-called Scotland Agreement and is anticipated to finalize the related laws in June, the USA has repeatedly damaged the settlement.

“Unilateral tariff threats undermine trust and place a significant burden on transatlantic trade,” mentioned the President of the Federal Association of Wholesale, Foreign Trade and Services (BGA), Dirk Jandura, to the Reuters information company on Friday. It can also be fully unclear on what authorized foundation Trump needs to implement the introduced tariff improve. This makes enforceable protecting clauses that create reliability and allow fast motion all of the extra necessary sooner or later. “Europe must remain willing to cooperate but consistently defend its interests.”

For economist Marcel Fratzscher, the renewed escalation within the commerce battle with the USA because of President Donald Trump’s tariff threats comes as no shock. “President Trump is exploiting Germany’s and Europe’s constant giving in as a weakness,” the President of the German Institute for Economic Research (DIW) advised the Reuters information company on Friday. “The fact that the European Union and the federal government have repeatedly given in in the conflict with Trump and let him have his way is now taking revenge again.”

The announcement got here shortly after Trump sharply criticized Chancellor Friedrich Merz (CDU). Trump urged Merz to give attention to ending the Ukraine conflict as an alternative of “interfering” in Iran’s affairs. In addition, Merz ought to “put his ailing country in order,” Trump mentioned in on-line media on Thursday.

Germany is chargeable for a big proportion of automobile exports from the EU and would in all probability be hit exhausting by larger tariffs.