US to raise EU car tariffs to 25% amid escalating tensions

US Trade Representative Jamieson Greer confirmed Monday that the United States will move forward with President Donald Trump's plan to increase tariffs on European Union car imports to 25%. This move marks a sharp increase from the previously agreed 15% levy.

Greer stated he communicated with European and German trade officials over the weekend to discuss their compliance with previous agreements, noting that the president is moving forward with this action as one part of a larger negotiation deal, News.Az reports, citing Reuters.

The tariff hike comes during a period of intense friction between Washington and Brussels. Tensions have peaked over the war in Iran and the refusal of European nations to deploy naval forces to the Strait of Hormuz. The relationship further soured following remarks by German Chancellor Friedrich Merz, who suggested the U.S. was being humiliated by Iran in peace talks. In response, the White House announced plans on Friday to withdraw 5,000 U.S. troops from Germany.

The European Commission has rejected claims of non-compliance, stating it will keep its options open to protect EU interests. The news has already rattled financial markets as German carmakers saw their shares slide on Monday. The automotive sector faces a significant fresh blow as the new 25% rate reverses a special August deal that had lowered duties from a national security-based baseline. As of Monday afternoon, the tariffs had not yet been officially adopted, but Greer emphasized that the administration remains committed to the hike.

News.Az 

By Leyla Şirinova