In his statement, Trump mentioned that the EU “is not complying with our fully agreed to Trade Deal,” but did not elaborate on his specific concerns.
“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.” – President… pic.twitter.com/7vC3Nh7iPD
— The White House (@WhiteHouse) May 1, 2026
Trump and European Commission President Ursula von der Leyen had reached the trade agreement last July, which established a 15% tariff on many goods.
Both the U.S. and EU had previously reaffirmed their commitment to the trade framework known as the Turnberry Agreement, named after Trump’s golf course in Scotland.
However, the integrity of the 2025 agreement was initially questioned after the Supreme Court ruled this year that the Republican president did not have the legal authority to declare an economic emergency and impose tariffs on EU goods.
The original agreement set a 15% tariff ceiling on EU imports, but the Supreme Court decision reduced this to 10% as the Trump administration introduced a new series of import taxes based on alternative regulations. Currently, investigations regarding trade imbalances and national security risks are underway, potentially jeopardizing the agreement with the EU.
The EU anticipated that the bilateral deal would save European automakers approximately 500 million to 600 million euros ($585 million to $700 million) monthly.
According to Eurostat, the value of EU-U.S. trade in goods and services reached 1.7 trillion euros ($2 trillion) in 2024, averaging about 4.6 billion euros daily.
“A deal is a deal,” stated the European Commission in February following the Supreme Court ruling. “As the United States’ largest trading partner, the EU expects the U.S. to honor its commitments as outlined in the Joint Statement — just as the EU remains committed to its obligations. EU products must continue to enjoy the most competitive treatment, without any tariff increases beyond the clearly established and all-inclusive ceiling previously agreed.”
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