1 min readUpdated: May 1, 2026 09:56 PM IST
US President Donald Trump on Friday announced that tariffs on cars and trucks imported from the European Union will be raised to 25 per cent, with the new rates set to take effect next week. The decision marks a significant shift in transatlantic trade policy and comes at a time when the global economy remains sensitive to policy shocks.
Trump said that the EU had failed to adhere to the terms of the previously negotiated trade deal, although he did not specify the areas of non-compliance. “The EU is not complying with our fully agreed to Trade Deal,” he said, without providing further details.
The original agreement, finalised in July between Trump and Ursula von der Leyen, had set a 15 per cent tariff on most traded goods. The framework, referred to as the Turnberry Agreement, was designed to stabilise trade relations and avoid escalation.
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