President Trump said that the European Union was not upholding its part of a trade agreement and that he would increase tariffs next week.
President Trump said Friday that he planned to increase tariffs on European cars and trucks because the European Union was not complying with a trade deal agreed to with the United States.
Mr. Trump said the tariff would increase to 25 percent beginning next week. The United States had lowered auto tariffs for the European Union to 15 percent as part of a trade deal between the governments, but U.S. officials have complained that the European Union isn’t moving fast enough to put it in place.
In February, the Supreme Court curtailed the president’s use of tariffs, saying that he had exceeded his authority in using an emergency law to impose tariffs. But the tariffs on European cars were issued under a separate, national security-related law, Section 232 of the Trade Act of 1964, and are not affected by the Supreme Court ruling.
“The European Union is not complying with our fully agreed to Trade Deal,” the president said a post on Truth Social.
A higher tariff on cars could be devastating to European automakers, which would face more barriers selling in the United States than car manufacturers in Japan, South Korea and Mexico.
“The E.U. is implementing its joint statement commitments in line with standard legislative practice,” said Olof Gill, a spokesman for the European Commission, the executive arm of the European Union. He added that if the United States were to violate the agreement, “we will keep our options open to protect E.U. interests.”