Trump says 25% tariff on EU cars, trucks imports to kick in next week

US President Donald Trump said on Friday that he plans to raise tariffs on cars and trucks imported from the European Union to 25% as early as next week, accusing the bloc of failing to honour a previously agreed trade arrangement, Report informs referring to The Economic Times.

Vehicles assembled at American plants, he said, would be exempt from the higher duties.

In a post on Truth Social, Trump framed the move as both a corrective measure and an incentive for manufacturers to expand production in the United States.

"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. The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF," he wrote in his post.

The US President also pointed to a surge in domestic investment, claiming that more than $100 billion is being committed to new automobile and truck manufacturing facilities across the country.

He described the scale of planned expansion as unprecedented, with multiple plants under construction and expected to come online in the near term, employing American workers.

"Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing. These Plants, staffed with American Workers, will be opening soon - There has never been anything like what is happening in America today! Thank you for your attention to this matter," his post further read.