US-EU Trade Tensions Escalate

Mohammad Ali (@ChaudhryMAli88) Published May 02, 2026 | 03:15 PM

BRUSSELS, (UrduPoint / Pakistan Point News / WAM - 02nd May, 2026) Trade tensions between the United States and the European Union have intensified after US President Donald Trump announced his intention to raise import tariffs on European cars and lorries to 25 percent "from next week". The current tariff stands at 15 percent.

"Based on the fact that 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," President Trump said on his social media platform, Truth Social. "The Tariff will be increased to 25 percent."

The move comes less than a year after the EU and US agreed a deal at Trump's Turnberry golf course in Scotland, which set levies on most European goods at 15 percent.

European reaction has been swift. Bernd Lange, Chair of the European Parliament's International Trade Committee, said Trump's statement is "unacceptable". He dismissed the President's argument that the EU was not fulfilling its side of the deal and said the European Parliament was in the process of drafting the necessary legislation, which it aimed to finalise in June.

Lange said the US has "repeatedly breached the agreement” pointing to products containing steel and aluminium, which are now subject to average tariffs of 26 percent.

"Now we can only respond with the utmost clarity and firmness, drawing on the strength of our position," he added.