President Donald Trump has announced plans to raise tariffs on cars and trucks imported from the European Union from 15% to 25%, escalating tensions over trade compliance and international diplomacy.

Trump said the move was prompted by what he described as the EU’s failure to honor the terms of a previously negotiated trade agreement. He also referenced comments made by German Chancellor Friedrich Merz regarding U.S. foreign policy. In a May 1 post on Truth Social, Trump stated that the higher tariffs would take effect next week.

European Commission President Ursula von der Leyen pushed back against the announcement, emphasizing that the trade agreement reached in Brussels last July should remain in force. That agreement had established a 15% tariff rate on imported vehicles.

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