WASHINGTON – President Donald Trump threatened to increase tariffs on cars an trucks from the European Union in retaliation for what he alleged was the EU's failure to comply with a trade agreement.
“I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States,” Trump said May 1 on social media. “The Tariff will be increased to 25%.”
Trump didn’t cite which law he would use to impose the tariffs. The Supreme Court overturned his emergency tariffs on imports from other countries in February, but he has vowed to impose the fees under other statutes, which typically come after an investigation of unfair trade practices rather than by the president on his own.
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EU trade official calls US 'unreliable' trading partner
Bernd Lange, head of the EU parliament's trade committee, said the announcement demonstrated that the United States is an unreliable trading partner.
"This latest move demonstrates just how unreliable the U.S. side is," Lange said. "This is no way to treat close partners. Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position."
Trump said he aims for car companies to move factories to US
Trump didn’t cite what violations of the agreement he thought occurred in his social media post. He elaborated on his decision a little with reporters at the White House before leaving for Florida on May 1.
“We raised the tariffs because, as usual, they were not adhering to the agreement that we have,” Trump said without elaborating on the alleged violations. “It forces them to move their factory production much faster.”
Trump said Japan, South Korea and other countries are building $100 billion worth of car factories in the United States because of tariffs he imposed.
“The European Union was not adhering to the deal that we made,” Trump said.
Previous EU trade deal set tariffs at 15%, with investments in US
Trump had announced the trade deal with the European Union in July, days ahead of a deadline he set. He met the European Commission's president, Ursula von der Leyen, during a trip to Scotland, where the pair discussed terms and came to an agreement on a 15% tariff on most European exports to the United States.
The figure was similar to agreements struck recently between Trump and other major trading partners, including Japan. The levy is higher than the 10% rate sought by Europeans but a reduction from the 30% Trump threatened to impose earlier in July.
The agreement also included $600 billion in EU investments in the U.S., and the purchase of $750 billion worth of U.S. energy.
Trump administration considering other tariffs for forced labor, excess production facilities
Trump imposed temporary 10% tariffs worldwide after the Supreme Court's decision.
U.S. Trade Representative Jamieson Greer is in the midst of two sets of hearings on proposed tariffs for countries that have excess production facilities and countries that allow forced labor.
This article originally appeared on USA TODAY: Trump threatens European Union with 25% tariffs on cars and trucks
