President Trump Increases Tariffs on EU Cars, Impacting European Automakers
President Trump announced on May 1, 2026, that tariffs on cars and trucks imported from the European Union will be increased to 25% from the previously agreed 15%. This decision is based on accusations that the EU has not complied with a trade framework agreed upon last year. The tariff hike is expected to significantly impact European automakers such as Stellantis, BMW, and Mercedes-Benz, potentially raising prices for consumers and squeezing already tight margins. The European Commission maintains that it is implementing the trade deal in line with standard legislative practice, while the European Parliament calls for a swift conclusion of negotiations to avoid prolonged uncertainty. 
