U.S. President Donald Trump announced on Friday a sharp increase in tariffs on vehicles imported from the European Union, raising them to 25% starting next week. The move comes as Washington accuses the EU of failing to comply with a previously agreed trade deal.

In a statement posted on his Truth Social platform, Trump said the decision targets cars and trucks entering the United States, while emphasizing that vehicles manufactured domestically would not be subject to the new tariffs.

The president highlighted ongoing investments in the U.S. automotive sector, noting that more than $100 billion has been committed to building new car and truck factories across the country, describing it as a historic record. He added that these facilities are expected to create jobs for American workers and will soon become operational.

The announcement marks a further escalation in transatlantic trade tensions. The current U.S. administration had already imposed tariffs on several European products, including steel and aluminum, prompting concerns about a potential trade conflict between the two sides.

Earlier in 2025, Trump invoked the International Emergency Economic Powers Act of 1977 to impose tariffs on imports from over 100 countries. He argued that the policy aimed to reduce the trade deficit, boost domestic manufacturing, and increase federal revenues while strengthening the U.S. position in trade negotiations.

However, the measures have faced legal challenges. A coalition of about a dozen U.S. states and a group of small businesses filed lawsuits, arguing that the president had overstepped Congress’s constitutional authority to levy taxes.

The plaintiffs, many of whom rely on imported goods, claimed that the tariffs disrupted their operations, raised consumer prices, and led to job losses.

The case ultimately reached the Supreme Court of the United States, which ruled in late February to strike down the broad tariffs. The court found that the executive branch had exceeded its authority by imposing sweeping duties on imports from nearly all trading partners.