Trump Threatens 25% Tax on EU Cars
President Trump says he will add a 25% tariff on cars from the European Union. This is up from the current 15% rate.
The 15% rate came from a deal made last July. That deal was reportedly called the Turnberry Agreement.
Reports say it was named after Trump's golf course in Scotland. European Union leader Ursula von der Leyen met Trump there to reach the deal.
Trump says the European Union has not followed the agreement. New tariffs on cars and trucks sent to the United States will start next week.
But the tariffs will not apply if European Union companies build their vehicles in the United States. The European Union says its products must keep the best trade terms already agreed. It says tariffs must not go above the level set in the deal.
Klear Note — Tariffs are taxes on goods from other countries. Higher tariffs make foreign products cost more in stores. The EU and US trade cars worth billions of dollars each year.
Key Terms 3
- tariff A tax added to goods bought from another country
- European Union A group of 27 European countries that trade together
- Turnberry Agreement A trade deal made in July 2024 between the US and European Union