JAKARTA - US President Donald Trump said he would raise tariffs on cars and trucks from the European Union to 25 percent starting next week. He claimed the bloc did not comply with a trade agreement with the US.
According to a Yonhap report quoted on Saturday, May 2, Trump conveyed the plan through a post on Truth Social. He also emphasized that cars produced in the US would not be subject to tariffs.
"Next week I will raise the tariffs imposed on the European Union for cars and trucks entering the United States," Trump wrote. "Tariffs will be raised to 25 percent."
Based on last year's trade agreement, the Trump administration had previously lowered the EU car tariff to 15 percent. Previously, European cars were subject to a total tariff of 27.5 percent, consisting of a 25 percent sector-specific tariff and an old 2.5 percent levy.
In a statement to the press, Trump said the tariff increase was aimed at pressuring the European Union to move its companies' automotive production to the US more quickly.
"That forced them to move the production of the factory much faster," Trump said, as quoted by Yonhap.
Trump also claimed that there is currently an automotive plant under construction worth more than 100 billion US dollars in the US. The investment, said Trump, came from various countries, including Japan, South Korea, Canada, and Mexico.
"However, the European Union did not comply with the agreement we made," Trump said.
The announcement of these tariffs shows Trump again using tariffs as trade pressure. The US market is large, but the entry cost can be more expensive for manufacturers who continue to produce vehicles abroad.
The policy was announced as Trump also criticized NATO members. He assessed that they did not meet his call to help secure the Strait of Hormuz, including by sending warships to escort merchant ships.
On Wednesday, Trump said his administration was "studying and reviewing" the possibility of reducing US troops in Germany. The decision is said to be taken in the "near future".
In the same post, Trump again alluded to his efforts to revive the US automotive industry. He said many car and truck factories were being built with investments of more than 100 billion US dollars.
Based on a bilateral trade agreement with the US last year, South Korean cars are currently subject to a 15 percent tariff.
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