President Donald Trump said he will raise tariffs on cars and trucks from the European Union to 25% next week, arguing the EU isn\u2019t meeting terms of an agreed U.S.-EU trade deal. Trump and the European Commission previously reached an agreement in July that set a 15% tariff ceiling on most goods,but a U.S. Supreme Court ruling this year limited the administration\u2019s legal basis for those tariffs-leading the administration to use alternative authorities and impose a 10% tax while pursuing further increases.<\/p>\n

The move comes at a fragile time for the global economy,with inflation and slower growth<\/a> concerns intensified by higher oil and gas prices following strikes that effectively disrupted shipping through the Strait of Hormuz. Domestically, Trump also faces political pressure ahead of November\u2019s midterm elections, as inflation remains a key issue and a recent poll shows low approval for his handling of the economy.<\/p>\n

The Trump administration\u2019s proposed replacement tariffs could put the broader trade framework-often referred to as the \u201cTurnberry Agreement\u201d-at risk, tho the EU says the deal shoudl be honored and expects the U.S. to keep tariff increases within the agreed ceiling. The EU estimates the bilateral arrangement helps save European automakers about \u20ac500 million to \u20ac600 million per month, and it points to the depth of U.S.-EU trade,worth \u20ac1.7 trillion in 2024. <\/p>\n