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United States·European Union·Germany·Italy·Trade & Economy·Sanctions

US plans to raise tariffs on EU cars to 25%, reversing earlier deal

Wednesday, 6 May 2026, 06:44 · 1 min read

The United States intends to impose 25% tariffs on European automobile imports, walking back an August agreement that had reduced levies — originally set under Section 232 national security provisions — to 15%. US Trade Representative Jamieson Greer confirmed the move on Monday, with the Trump administration accusing the EU of failing to comply with the earlier deal, a claim EU officials have rejected. The tariffs would fall hardest on German automakers such as BMW, Mercedes-Benz, and Volkswagen, and disproportionately affect luxury and high-end vehicles — including ultra-premium brands like Ferrari and Lamborghini, which manufacture exclusively in Italy — with costs expected to be passed directly to consumers.

Sources
Al Jazeera EnglishUS plans to hike tariffs on EU cars to 25% will hit luxury market the most ↗︎
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