US President Donald Trump said on May 1 that he plans to raise tariffs on cars and trucks imported from the European Union to 25 percent, escalating trade tensions between Washington and its European allies. The increase would take effect as early as the following week.

Trump said the move was in response to what he described as the EU’s failure to comply with a previously agreed trade deal that had capped tariffs at around 15 percent. He also suggested that European automakers could avoid the tariffs by shifting production to the United States. 

The announcement has drawn criticism from European officials and raised concerns within the auto industry, with analysts warning it could disrupt supply chains and increase costs. The EU has signaled it may respond if the tariffs are implemented, adding to uncertainty in global trade relations. The proposed tariffs mark a renewed strain in transatlantic ties, already under pressure from disagreements over trade and foreign policy.