EU, on Trump's Car Tariff Threat: "Can Respond if US Violates Agreement"

EU, on Trump's Car Tariff Threat: "Can Respond if US Violates Agreement"

The EU Commission warned that it could respond to protect EU interests if the US violates the trade agreement, following US President Donald Trump's announcement of increased tariffs on cars from the European Union (EU).

President Trump stated today that the EU is not adhering to the trade agreement and announced that he would raise the tariff rate on EU-made passenger cars and trucks to 25% starting next week.

In response, the EU Commission countered that the EU is adhering to the trade agreement with the US and warned that it is open to retaliatory measures if the US increases tariffs, Reuters and DPA reported.

An EU Commission spokesperson said, "We remain committed to a predictable and mutually beneficial European-US relationship," adding, "If the United States takes measures inconsistent with the joint statement (on trade agreement), we will keep our options open to protect the EU's interests."

The spokesperson emphasized, "The EU is fulfilling its commitments under the joint statement in line with standard legislative practices."

Bernd Lange, Chair of the European Parliament's Committee on International Trade, stated on X (formerly Twitter), "Unacceptable." He added, "The European Parliament is still working to finalize legislation while respecting the Scotland agreement. The EU is implementing, but the US side continues to break its promises."

The US and the EU reached a trade agreement in July last year to reduce US tariffs on most EU imports, including automobiles, to 15%, while the EU would abolish tariffs on US industrial goods and improve market access for agricultural products.

However, the pace of agreement implementation within the EU has slowed due to ongoing issues such as the US's tariff threats and reversals against European countries that opposed President Trump's demand to incorporate Greenland, and US Supreme Court rulings related to tariffs.

In March, the European Parliament processed the approval of the trade agreement, which had been halted twice, adding an amendment to protect European interests if the US fails to implement the agreement.