President Trump announced on Friday that the United States will raise tariffs on European automobiles and trucks to 25 percent starting next week, accusing the EU of breaching a trade agreement that lowered auto duties to 15 percent. The move leverages Section 232 of the 1964 Trade Act, a national‑security provision that survived a recent Supreme Court rebuke of other tariff actions.

EU officials argue the bloc is following standard legislative procedures and warn that any American violation will trigger countermeasures. European Commission spokesman Olof Gill said the Union will keep “options open” to protect its interests, while analysts at Eurasia Group see the threat as a possible catalyst for a broader trans‑Atlantic trade dispute. Volkswagen’s Zwickau plant exemplifies the exposure of German exporters.

Negotiations on the Turnberry deal, which would lock in the 15 percent tariff for EU carmakers, have stalled in the European Parliament pending assurances that Washington will not impose higher duties. With the United States also moving to lift a 10 percent levy on Scotch whisky, the contradictory signals risk unraveling weeks of progress on critical‑minerals cooperation and could force European leaders to accelerate the pending ratification or launch retaliatory tariffs.