President Donald Trump announced he plans to raise tariffs on cars and trucks from the European Union, accusing the bloc of failing to comply with a trade deal.
The tariffs do not apply to cars and trucks built in America.
Trump wrote:
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%. 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 — There has never been anything like what is happening in America today! Thank you for your attention to this matter. President DONALD J. TRUMP
Bloomberg noted that the tariffs “could have a particular impact on Stellantis NV, which imports Alfa Romeo, Fiat and Maserati models into the US from Europe.”
Volkswagen, Mercedes-Benz, and BMW have assembly plants in America.
Trump and the EU struck a deal last August that imposed a flat 15% tariff on European imports.
The deal included automobiles.
The 25% tariff is 5% lower than what Trump threatened the EU with last year. The EU wanted a 10% baseline.
The EU agreed to buy $750 billion in American energy and invest $600 billion into our economy.
We do not yet know which part of the trade deal the EU has supposedly not honored.
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