After U.S. President Donald Trump signaled a tariff increase on cars from the European Union (EU), the EU immediately pushed back and warned it could respond.
According to Reuters and other foreign media, Trump said the EU is not properly implementing the trade agreement it reached with the United States and announced that starting next week he would raise the tariff on EU-made passenger cars and trucks to 25%.
The European Commission rebutted the U.S. claim. It said the EU is fulfilling its obligations under the existing trade agreement and that if the United States takes measures that run counter to the agreement, it could review response options to protect the EU's interests.
A European Commission Spokesperson said, "We continue to support a predictable and mutually reciprocal relationship between Europe and the United States," but added, "If the United States takes steps that are not in line with the joint statement, we will keep all options open to protect the EU's interests." The commission also stressed that the EU is implementing the commitments in the joint statement through the ordinary legislative procedure.
Criticism also emerged in the European Parliament. Bernd Lange, chair of the European Parliament's trade committee, said on X (formerly Twitter), "Unacceptable," adding, "The European Parliament is finalizing the relevant legislation while respecting the Scotland agreement." He argued, "The EU is implementing the agreement, but the U.S. side keeps breaking its promises."
Earlier, the United States and the EU agreed in a July trade deal last year to lower the U.S. tariff on most EU-made imports, including automobiles, to 15%. In return, the EU agreed to eliminate tariffs on U.S.-made manufactured goods and improve market access for agricultural products.