Trump says he will hike tariffs on EU cars to 25%

An important development from the financial markets: Trump says he will hike tariffs on EU cars to 25% Just now Share Save Add as preferred on Google Archie Mitchell Business reporter Getty Images Donald Trump is increasing the tariffs charged on cars and trucks from the European Union to 25%. The US president accused the EU of "not complying with our fully agreed to trade deal" in a post on Truth Social, but did not explain how. "I am pleased to announce that… next week I will be increasing Tariffs charged to the European Union for Cars and Trucks," Trump said on Friday.

The current level of tariffs charged on goods entering the US from the EU is 15%, under a deal negotiated last July. The trade deal agreed between the EU and US, at Trump's Turnberry golf course in Scotland , set levies on most European goods at 15%. It was a reprieve for the EU from the 30% tariffs Trump had threatened to impose as part of his "Liberation Day" wave of tariffs that April.

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In exchange, Europe had agreed to invest in the US and make changes on the continent expected to boost US exports. As tensions mounted over President Trump's threats to annex Greenland, a self-governing Danish territory, the European Parliament in January suspended the approval of the deal . It later included a clause stating the deal can be suspended if the Trump administration is deemed to have "undermined the objectives of the deal, discriminated against EU economic operators, threatened member states' territorial integrity, foreign and defence policies, or engaged in economic coercion".

It was approved by the European Parliament in March, following the dispute.

Financial markets are tracking the development closely as investors assess the likely impact.