The European Union said on Saturday (2 May 2026) that if America takes steps contrary to the common trade agreement, it will keep all options open to protect its interests. This reaction comes after US President Donald Trump warned of increasing 25 percent tariff on cars and trucks imported from the European Union.

“We are fully committed to a stable and mutually beneficial trans-Atlantic relationship, but if the US does not live up to the joint statement, we will keep all options open to protect our interests,” a European Commission spokesperson told Chinese news agency Xinhua.

The spokesperson clarified that the EU is implementing its commitments under the agreement signed last year in accordance with the normal legislative process and during this time the US administration is being kept constantly informed. Besides, Brussels is also seeking clarity from Washington regarding its commitments under the agreement. As per the EU-US trade agreement signed last year, the EU agreed to suspend tariffs on US industrial products and impose tariff-rate quotas for agri-food products. In return, America had promised to impose 15 percent import duty on most European products.

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Tariffs on cars and trucks coming from the EU

Donald Trump said on Friday that he has increased the tariff on cars and trucks coming from the European Union to 25 percent. He alleged that the European Union is not following the existing trade agreement. Before leaving Marine One, Trump said, ‘We have increased tariffs on cars coming from the European Union because they were not following our trade agreement. This will bring billions of dollars to America and force companies to rapidly shift their production to America.

Trump also said that the purpose of this step is to motivate global automakers to increase investment in America. He claimed that at present auto plants worth more than $100 billion are under construction in America, which is a record. This includes investments from Japan, South Korea, Canada and Mexico.

Tension between America and European Union

This decision of tariff increase is being seen as a new increase in trade tensions between the US and the EU, especially in the auto sector, which has long been a center of dispute between the two sides. Experts believe that if this dispute escalates, it may also affect global supply chains and economic stability.

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