Washington: U.S. President Donald Trump has declared a significant increase in tariffs on automobiles and trucks imported from the European Union, elevating them to 25% from the previously agreed-upon 15%. This decision is set to take effect next week as a response to what Trump describes as the EU's failure to adhere to trade agreements with the United States.
According to Thai News Agency, President Trump communicated via his social media platform, Truth Social, expressing that the European Union has not fully complied with the established trade deal. As a result, he plans to impose the higher tariffs on EU-manufactured cars and trucks entering the U.S. market. Trump's statement made it clear that vehicles produced in U.S.-based factories would be exempt from these tariffs.
At a press briefing held at the White House, Trump elaborated on his strategy, suggesting that the increased tariffs are intended to incentivize European automobile manufacturers to relocate their production plants to the United States more promptly. He contended that the European Union has violated existing trade pacts, and the imposition of a 25% tariff would not only boost U.S. revenue by billions but also compel European companies to shift their manufacturing operations stateside.
In response to Trump's assertions, the European Commission has dismissed the claims of non-compliance, stating that the EU remains committed to protecting its interests and will explore all available options should the United States proceed with actions perceived as a breach of the trade agreement.
This tariff escalation takes place against a backdrop of rising tensions between the United States and the European Union, particularly concerning the potential conflict in Iran and Europe's reluctance to deploy naval forces for operations aimed at reopening the Strait of Hormuz.