Advertising
Advertising
instagram
Advertising

Donald Trump Threatens Europe—Aiming to Strike the Automotive Market. What’s the American President Playing For?

US President Donald Trump continues to threaten Europe. On Friday he announced that in the coming week he will raise tariffs on cars from the European Union to 25%. It is to be a penalty for Brussels not complying with the trade agreement made with his country.

Donald Trump Threatens Europe—Aiming to Strike the Automotive Market. What’s the American President Playing For?
JIM WATSON/AFP/East News
Advertising
Aa
Share
facebook
twitter
linkedin

Table of contents

  1. Trump wants a new trade war?
    1. Withdrawal of troops from Germany

      Donald Trump wants to raise tariffs on EU cars to 25% in a few days. He blames Brussels for the conflict.

       

      Trump wants a new trade war?

      Donald Trump claims that the trade agreement signed in July 2025 with European Commission President Ursula von der Leyen is not being observed by Europeans. As a result he plans to raise tariffs on European cars.

      “I am pleased to inform that because the European Union does not fully observe the trade agreement we agreed on, next week I will increase the tariffs on passenger and commercial vehicles imported into the United States from the EU. The tariff will rise to 25%” - Trump wrote in a post on his platform Truth Social.

      He added, however, that if European brand cars are produced in the USA, tariffs will not apply, which fits into his broader policy of supporting American industry and moving production to his country.

      During a media interview he did not explain which provisions of the EU agreement are allegedly violated. Many indications point to him merely looking for a pretext to renegotiate the deal with Brussels.

      Advertising

      Spanish MEP Iratxe García Pérez believes that “the threat of a 25% tariff on EU cars by Trump is a serious escalation that undermines trust.”

       

       

      Global politics commentator SunDeep Mehra warns that “European automotive industry will soon feel a huge pain” because capital will drain away.

       

       

      The portal Defence24 notes Trump’s tariff idea in his latest announcement about withdrawing some troops from Germany, Italy and Spain.

       

       

      It is worth noting that on April 24 in Washington the EU trade commissioner Marosz Szefczovicz appeared. At a press conference he said he expects that despite the investigations undertaken by the USA, which were supposed to be the basis for raising tariffs, the United States will comply with the provisions of the agreement made in summer 2025. This would mean a maximum 15% tariff on most EU goods.

      Today, after the US Supreme Court ruling that lifted most tariffs, tariffs until July last year are 10%.

      So what is Trump playing? Does he really raise tariffs? The newspaper “Wall Street Journal” believes that his social media posts should not be taken fully seriously – it is his negotiating weapon and he may try to obtain concessions from trade partners with it.

      Advertising

      On top of that is domestic policy. Trump recently boasted about the increase in domestic investment: he said that over 100 billion USD is now spent on new car and truck production plants. In his style he described the scale of his actions as unprecedented. Many factories are supposed to be under construction and soon start hiring American workers. Thus he signaled to European brands that they can produce cars in his country.

      “Many car and truck plants are currently under construction, and investments exceed 100 billion USD — a record in automotive production history. These factories, staffed with American workers, will soon be launched — never before has something like this happened in America! Thank you for your attention to this matter,” Trump said.

      European markets may, however, react to Trump’s threats with declines

      “If the threat materializes – which does not always happen with Trump – it will hit the already weakened automotive industry hard. According to the European Automobile Manufacturers Association (ESA), in 2024 the United States accounted for 22% of European exports, with 750,000 vehicles worth a total of 38.9 billion euros, making it the second largest market for the industry after the United Kingdom,” Le Monde calculates.

       

      Read also: The global economy in trouble. The effects of the war in the Middle East

      Advertising

       

      Withdrawal of troops from Germany

      Everything fits into a broader context: threatening Europe with the withdrawal of some US troops from their territory. This includes about 5,000 soldiers stationed in Germany. The Pentagon spokesperson Sean Parnell confirmed this on Friday. It is the result of a “thorough analysis of force deployment in Europe.”

      Donald Trump, in a media interview, added that the 5,000 troops will not be finished.

      “We will significantly reduce [the number of soldiers – editor’s note]. And it will be much more than 5,000,” he said.

      Today, about 36,000 US soldiers are stationed in our western neighbor. Partial withdrawal from Italy and Spain is also planned.

       
      See also: Trump returns with tariffs. A 100% tariff rate will hit a key sector

      Advertising

      FXMAG Team

      FXMAG Team

      FXMAG’s editorial team creates high-quality content on financial markets, investing, and the global economy. We provide timely analysis and clear insights to help our audience navigate complex market dynamics.


      Topics

      Wall Street Journalinvestmentursula von der leyentariffsconsumer sentimenttradeeconomyinternational tradeUS productionTrade tensionsTrade negotiationsautomotiveexport

      Brussels

      Donald Trump’s policy

      carsAutomotive industry

      EU automotive

      US isolationism

      importexport industry

      American industry

      US-EU conflict

      tariff war

      US-EU tariff war

      cła

      US automotive

      who exports

      new factories in the US

      Donald Trump’s economic policy

      Advertising
      Advertising

      Most recent

      Recomended