Donald Trump jolted US-EU trade relations late Friday by declaring that he would scrap part of last summer’s tariff agreement and raise duties on cars and lorries imported from the European Union to 25% next week.

The move targets one of the most politically sensitive channels in transatlantic commerce and lands with little warning for Brussels. Trump said the EU had failed to comply with the deal he struck with European leaders at his golf course in Scotland, arguing that ratification had dragged on too long. Reports indicate the announcement blindsided EU officials, arriving on a public holiday in much of Europe and reopening a dispute that both sides had tried to contain.

Trump framed the tariff hike as a response to EU delay, but the decision threatens to turn a stalled agreement into a full trade confrontation.

Key Facts

  • Trump said he is tearing up part of the tariff deal reached with EU leaders last summer.
  • US tariffs on EU cars and lorries will rise from 15% to 25%, according to his announcement.
  • The higher duties are set to take effect next week.
  • Trump accused the European Union of failing to ratify the agreement in time.

The increase from 15% to 25% matters because vehicles sit at the center of the US-EU industrial relationship. Any jump in duties can ripple quickly through automakers, suppliers, dealers, and consumers. Even before officials respond formally, the signal alone injects fresh uncertainty into pricing, production planning, and diplomatic talks. Sources suggest the abrupt timing also raises pressure on European leaders to decide whether to push for renewed talks or prepare countermeasures.

This clash also revives a broader question about how durable Trump’s trade deals really are. He has often treated tariffs as immediate leverage rather than fixed policy, and this latest reversal fits that pattern. For the EU, the dispute tests whether it can preserve a working relationship with Washington while defending its own timetable and legal process. For businesses on both sides of the Atlantic, the next few days now matter as much as the announcement itself: watch for Brussels’ response, any sign of exemptions, and whether this threat hardens into a wider economic fight.