EU Responds Again to Trump’s Threat of Auto Tariffs

On May 5th local time, European Commission President Ursula von der Leyen responded to US President Trump’s earlier threat to raise tariffs on EU cars imported into the US to 25%, stating that the US has no right to unilaterally impose tariffs and that the EU is prepared for “all scenarios.” On May 1st, Trump accused the EU of not complying with the bilateral trade agreement and proposed raising tariffs from the current 15% to 25%. The European Commission stated that it would “reserve all options” and assess countermeasures.

Agreement Implementation and Points of Contention

Current Agreement: An agreement reached between the US and the EU in July 2025 stipulates that the US will impose a 15% tariff on EU cars, and the EU has pledged to increase its investment in the US by $600 billion.

Delayed Approval: The agreement was delayed for several months due to the US demand for Greenland and the Supreme Court’s ruling that Trump’s tariff policy was illegal, and it was not until March 2026 that the European Parliament approved it. The EU alleges political motives.

Regarding German automakers: Bernd Lange, chair of the European Parliament’s Trade Committee, stated that Trump’s tariff threats are “without legal basis” and are intended to pressure German automakers.

Procedural disputes: The EU emphasizes that it is fulfilling the agreement according to legislative procedures and continues to inform the US of progress, but the White House has not released the legal basis for the tariffs.