US President Donald Trump announced on Friday that he would raise tariffs on cars and trucks manufactured in the European Union to 25%, accusing the bloc of not honouring a trade pact. This decision, communicated via his Truth Social network, will affect European automotive exports, including those from manufacturers with a presence in Catalonia.
Trump stated, "I am pleased to announce that, since the European Union is not complying with our trade agreement, which was fully agreed upon, next week I will increase the tariffs applied to the European Union on automobiles and trucks entering the United States. The tariff will be raised to 25%." He added that vehicles made in US plants would not face these tariffs.
According to Trump, many car and truck factories are currently under construction in the US, representing an investment of over $100 billion. He said these plants, staffed by American workers, would open soon, celebrating the "unprecedented" level of investment in US manufacturing.
Legal Challenges and Previous Agreements
The authority under which Trump plans to raise these tariffs remains unclear. In February, the Supreme Court invalidated a significant portion of his previously imposed tariffs, dismantling the tariff scheme used in his trade disputes. Following this setback, the US President introduced a new temporary global tariff of 10% under a different legal framework, which Congress is expected to extend in July.
Mid-2025 saw both parties reach an agreement where the EU accepted a 15% tariff on most European products. In return, the US would export most of its goods at a 0% tariff. This pact, however, is still awaiting ratification by Brussels.
EU Ratification Pending
The European Parliament has requested several safeguards before ratifying the trade agreement. These safeguards would allow the EU to suspend the agreement's implementation if Trump threatens new tariffs or jeopardises the bloc's territorial integrity. This concern arose in January during a diplomatic crisis over the control of Greenland, a Danish territory. The ongoing situation creates uncertainty for European manufacturers, including those in Catalonia, regarding future trade relations with the US.
