Trump To Impose 25% Tariffs On European Union Cars, Trucks: 'Not Complying With Trade Deal'

(MENAFN- Live Mint) United States President Donald Trump has announced a 25 per cent tariff on European Union cars and trucks from next week, citing trade deal violations. In a post on Truth Social, Donald Trump accused the EU of“not complying with the agreed trade deal.”

Donald Trump said,“I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States. The Tariff will be increased to 25%."

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“It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF. Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing. These Plants, staffed with American Workers, will be opening soon,” he said, ending his post with: "There has never been anything like what is happening in America today!”

Trump and European Commission President Ursula von der Leyen had agreed to the trade deal last July. It set a 15 per cent tariff on most goods.

Both the US and the EU had previously confirmed their commitment to preserving the trade framework, known as the Turnberry Agreement, which was named after Trump's golf course in Scotland.

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However, the future of the deal became doubtful after the Supreme Court ruled that Donald Trump did not have the authority to declare tariffs on EU goods.

The initial agreement had been a tariff ceiling of 15 per cent on goods from the EU, but the Supreme Court ruling reduced that to 10 per cent as the Trump administration launched a new set of import taxes based on other laws.

The EU had said it expected the bilateral deal would save European automakers about 500 million to 600 million euros (USD585 million to USD700 million) a month.

After the Supreme Court ruling, the European Commission said,“A deal is a deal. As the United States' largest trading partner, the EU expects the U.S. to honor its commitments set out in the Joint Statement - just as the EU stands by its commitments. EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”

(With inputs from agencies)

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