Trump Has Just Made a Major Move Against European Car Imports | Carscoops

Trump Has Just Made a Major Move Against European Car Imports | Carscoops

      Trade tensions intensify as Trump accuses the EU of taking advantage of US trade policies

      17 hours ago

      by Michael Gauthier

      Trump threatens a 50 percent tariff on European imports, specifically targeting vehicles and parts.

      The President indicated that negotiations are stalling, and the tariff could be implemented as soon as June 1.

      If Trump proceeds, it could affect $45 billion worth of automotive imports.

      President Donald Trump is warning the European Union of a significant 50% tariff that may come into effect on June 1. Such a move could severely impact automotive imports; however, it is uncertain if he will act on his threat, as he is currently just “recommending” increasing tariffs.

      In a post on Truth Social, Trump asserted that the European Union was “created mainly to take advantage of the United States in trade” and has been “extremely challenging to engage with.” He further claimed that Europe’s taxes, regulations, trade barriers, and lawsuits against American firms have resulted in a trade deficit exceeding $250 million (£185 / €220). Trump declared that this deficit is “completely unacceptable” and stated that negotiations are “going nowhere!”

      More: Toyota Warns of Major Price Increases Coming That Will Fall on Consumers

      The announcement triggered market turmoil, indicating that Trump’s trade war may be reigniting. This occurs after the administration has repeatedly retreated and achieved only one notable trade agreement.

      While predicting future developments is challenging, The Guardian reported that the United States implemented a 20% reciprocal tariff on most goods from the European Union on April 2 but later reduced that rate to 10% to allow for discussions. Nonetheless, a 25% tariff on aluminum, steel, and automotive parts remains in effect.

      NBC News states that the European Union is the United States’ second-largest trading partner, following China. The U.S. imports $550 billion (£406 / €484) worth of goods while exporting over $350 billion (£259 / €308) billion. The primary exports from Europe include pharmaceuticals, vehicles, and automotive parts, the latter two valued at over $45 billion (£33 / €40) in 2024.

Trump Has Just Made a Major Move Against European Car Imports | Carscoops Trump Has Just Made a Major Move Against European Car Imports | Carscoops

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Trump Has Just Made a Major Move Against European Car Imports | Carscoops

Trade tensions rise as Trump claims the EU is taking advantage of US trade policies.