Donald Trump announced he will raise tariffs on EU vehicles to 25%, beginning "next week" unless European companies manufacture at American plants. The president's Truth Social post escalates transatlantic trade tensions and threatens a deal struck between Washington and Brussels last summer that reduced the "liberation day" levies to 15%.

The 25% tariff would apply to all European cars and trucks entering the US. EU lawmakers approved the trade deal earlier this year but set conditions including reversing the decision if new levies were imposed. US officials have grown frustrated by the slow pace at which the bloc has implemented its side of the agreement, particularly regarding industrial goods and agricultural products.

A European car industry representative warned that returning to higher tariffs would be "deeply damaging" for manufacturers and workers. Trump has maintained steep steel and aluminum tariffs at 50%, using different legal authority than blocked by the Supreme Court earlier this year. The move complicates Washington's efforts to secure critical mineral supply chains with allies while reducing dependency on China.