Trump said, in a post on his “Truth Social” platform, that the decision comes “based on the European Union’s failure to fully comply with the agreement,” noting that the agreement concluded last summer had set the ceiling of duties at 15% on cars and spare parts.
Germany is expected to be particularly affected by this increase, given its large share of automobile exports to the United States, which is the second largest market for European automobile exports after the United Kingdom.
Trade escalation
The trade escalation comes at a time when negotiations are continuing between the two sides, as European Trade Commissioner Maroš Šefčović visited Washington last April and held meetings with American officials, including Commerce Secretary Howard Lutnick and Trade Representative Jameson Greer, in an attempt to make progress in reducing duties.
Economically, these developments coincide with the repercussions of the war with Iran, which has led to fuel prices in the United States rising to record levels, driven by supply disruptions and the closure of the Strait of Hormuz.
These increases prompted many Americans to change their behavior, as some reduced long trips, while others resorted to searching for cheaper gas stations or switching to electric cars, in light of increasing pressure on consumers as the summer travel season approaches.
