Daijiworld Media Network - Washington

Washington, May 1: US President Donald Trump has threatened to impose higher tariffs on automobiles imported from the European Union, alleging non-compliance with a previously agreed trade deal.

In a post on social media, Trump said the US would increase tariffs on cars and trucks from the EU to 25 per cent starting next week. “The European Union is not complying with our fully agreed trade deal,” he said.

However, Trump did not specify the legal framework under which the tariffs would be imposed. Earlier this year, the Supreme Court of the United States struck down his emergency tariffs on imports, prompting the administration to explore alternative legal provisions, which typically require investigations into unfair trade practices.

Following the court’s decision, Trump had introduced temporary 10 per cent tariffs on imports globally.

Meanwhile, US Trade Representative Jamieson Greer is currently conducting hearings on proposed tariffs targeting countries with excess production capacity and those accused of allowing forced labour practices.

Trump had earlier announced a trade agreement with the EU in July after meeting Ursula von der Leyen during a visit to Scotland. The deal included a 15 per cent tariff on most European exports to the United States.

The latest move signals escalating trade tensions between the US and the EU, with potential implications for global trade and the automobile industry.