US announces higher tariffs on cars and lorries

On 1 May 2026, US President Trump announced on his platform Truth Social that he would be raising import tariffs on cars and lorries from the European Union from 15 to 25 per cent. The measure is set to come into force later this week. 

In the summer of 2025, the EU and the US had agreed on a trade deal. This agreement provides for a tariff cap of 15 per cent on most EU goods imported into the US, including cars and car parts. In return, the EU committed to scrapping tariffs on US industrial goods and facilitating market access for US agricultural products.

As justification for the increase now announced, President Trump pointed out that the EU was not adhering to the agreed trade deal. However, he did not provide any specific details on this. 

At the same time, Trump made it clear that vehicles produced in the US would not be affected by the increases. Trump thus appears to be seeking to encourage car manufacturers to focus more on production in the US.

The European Commission stated that the EU remains committed to the agreed trade framework and continues to seek a predictable transatlantic trade relationship. At the same time, it made it clear that it reserves the right to take further steps should the US implement measures that are not in line with the joint agreement.

The automotive industry has warned of additional burdens on transatlantic trade. Industry representatives called for swift political clarification and emphasised that the trade agreement concluded between the EU and the US must be upheld by both sides.

The US government’s announcement is creating new uncertainties in transatlantic vehicle trade. Whether and in what form the planned tariff increase will be implemented remains to be seen. Should it come into force, additional burdens are to be expected for companies; given their strong focus on the US market, these are likely to affect the German automotive industry in particular.