Donald Trump has reopened a trade fight with Europe in a single stroke, declaring that the US will raise tariffs on cars and lorries imported from the EU to 25% from next week.

The move tears up part of the tariff arrangement Trump struck with EU leaders in Scotland last summer and injects fresh uncertainty into one of the world’s biggest trading relationships. Trump says Brussels failed to comply with the deal and took too long to ratify it. Reports indicate the announcement caught EU officials off guard late on the May Day bank holiday, leaving little time for an immediate coordinated response.

Trump has turned a simmering dispute into an immediate deadline, forcing Europe to choose between retaliation, negotiation, or both.

The immediate focus falls on the auto sector, where any jump from 15% to 25% sharply raises the cost of selling into the US market. Carmakers, suppliers, shippers, and dealers now face a compressed timeline and a new layer of political risk. Even before any formal response from Brussels, the message from Washington is clear: the White House wants faster movement from the EU and is willing to use tariffs to get it.

Key Facts

  • Trump says US tariffs on EU cars and lorries will rise from 15% to 25%.
  • The higher duties are set to take effect next week, according to the announcement.
  • He says he is tearing up part of the tariff deal reached with EU leaders in Scotland last summer.
  • Trump accuses the EU of non-compliance and delays in ratifying the agreement.

The broader stakes reach well beyond vehicle imports. A rupture over tariffs can spill into wider negotiations on industrial policy, market access, and strategic cooperation between Washington and Brussels. Sources suggest European officials will now weigh whether to challenge the move, seek urgent talks, or prepare countermeasures. Each path carries economic and political costs, especially if the dispute widens.

What happens next matters because tariffs rarely stay contained. If the increase takes effect on schedule, pressure will build quickly on both sides to show resolve without triggering a larger trade war. The coming days will test whether this is a negotiating tactic aimed at forcing concessions or the start of a more durable break in US-EU trade ties.