Trump raises EU auto tariffs
- Donald Trump said Friday, May 2, he will raise U.S. tariffs on EU cars and trucks to 25%, up from 15%, starting next week. - The move targets autos and auto parts covered by the 2025 Turnberry deal, which had cut the rate from 27.5% to 15%. - It reopens a trade fight Europe thought it had contained and puts carmakers, suppliers, and Brussels back under pressure.
Cars are back at the center of the U.S.-Europe trade fight. Donald Trump said on Friday, May 2, that tariffs on cars and trucks imported from the EU will rise to 25% from 15%, starting the week of May 4. That matters because the car carveout was one of the few concrete wins in last year’s U.S.-EU trade deal. Now that piece is being pulled back, and everyone from BMW to parts suppliers has to rethink the math. (politico.eu) ### What exactly changed? The immediate change is simple: the U.S. rate on EU autos goes back up to 25%. Trump framed the move as a response to the EU “not complying” with the Turnberry trade deal reached last summer in Scotland. That earlier deal had reduced the ta(politico.eu)rriers on U.S. industrial goods. (politico.eu) ### Why is 25% such a big number? Because tariffs at that level are not a rounding error. They can wipe out margins on imported vehicles, force price hikes, or push companies to absorb losses to protect market share. The White House has already been using Section 23(politico.eu)t as a way to shift production and sourcing into the United States. (whitehouse.gov) ### Wasn’t there already a deal? Yes — basically that is why this stings. In September 2025, the Trump administration formally implemented the Turnberry agreement with the EU. Autos and auto parts were one of the headline items: the(whitehouse.gov)rade war. Instead, the auto piece is now back in play. (politico.eu) ### What is Brussels saying? Publicly, the European Commission is trying to keep room for both retaliation and negotiation. Its line is that it is implementing the Turnberry deal through the normal legislative process, while “keeping the U.S. informed. (politico.eu 1) (politico.eu 2) ### Who gets hit first? European carmakers that still ship significant volumes into the U.S. get hit first. So do suppliers whose parts cross the Atlantic before final assembly. The catch is that this is not just an “EU problem.” U.S. dealers, logistics firms, and c(politico.eu)s passed around the chain. (politico.eu) ### Why do foreign carmakers with U.S. plants still care? Because assembly is only part of the story. A vehicle built in the U.S. can still rely on imported engines, transmissions, electronics, or specialty components. The White House has already built systems that (politico.eu)afe. The supply chain is the real target. (whitehouse.gov) ### Is this really about cars? Cars are the lever, but the fight is broader. Autos are politically useful because they are visible, union-heavy, and tied to manufacturing prestige. They also give Washington(whitehouse.gov)ly, he is willing to reopen a sector both sides had treated as settled. (politico.eu) ### So what matters next? Watch for two things this week: whether the U.S. actually publishes and enforces the higher rate on schedule, and whether Brussels answers with retaliation or a fresh concession. If neither side blinks, this stops being a tariff tweak and becomes a new phase of the transatlantic trade war — with cars as the first casualty, not the last. (politico.eu)
