Europe Braces for US Tariff Escalation
The EU is preparing for potential U.S. tariff increases on cars, citing existing agreements that cap such duties.
Cuneyd Erdogan ·
EU Prepared for U.S. Tariff Hike The European Union is preparing for potential U.S. tariff increases on EU-made automobiles, following a threat from former President Donald Trump. European Commission President Ursula von der Leyen stated on May 5, 2026, that the EU is "prepared for every scenario" regarding a possible hike from the current 15% to 25% on car tariffs.
Von der Leyen emphasized that existing agreements between the U.S. and the EU include a cap on tariffs, which she asserts prevents unilateral increases. She highlighted that the EU is in the final stages of implementing a component of the EU-U.S. trade deal aimed at eliminating tariffs on various American products. This legislation is currently under negotiation in the European Parliament.
Under the terms of a joint statement issued last year, the U.S. was expected to reduce tariffs on EU-manufactured cars upon the introduction of this legislation, not its final approval.
The agreement also included a commitment from the U.S. to maintain an all-inclusive tariff cap of 15% on EU goods.
Von der Leyen noted that the "alignment with the agreed ceiling is still outstanding." European Council President António Costa affirmed the 27 member states' full support for the Commission's efforts.