US President Donald Trump has reignited the economic war with Europe by raising tariffs on cars and trucks from the European Union to 25%.
The US president accused the EU of "not adhering to our fully agreed trade deal" in a post on Truth Social, but did not explain how.
"I am pleased to announce that... next week I will be increasing tariffs on cars and trucks from the European Union," Trump said Friday.
The current level of tariffs imposed on goods entering the US from the EU is 15%, under an agreement negotiated last July.
Bernd Lange, chairman of the European Parliament's trade committee, denied that Europe had failed to deliver on its commitments and denounced the US administration's total lack of credibility. "Trump's behaviour is unacceptable," he said. "Parliament was ready to ratify the legislation on the trade agreement with the US. It is the United States that has repeatedly violated agreements and this is no way to treat allies. We can now only respond with the utmost clarity and determination."
Trump's latest announcement marks a sharp escalation of trade tensions between Washington and Brussels.
Talks on how to move forward with last summer's deal had stalled over a dispute over steel and aluminum, with major European economies such as Germany and France rejecting U.S. plans to impose tariffs on a wide range of goods.
Cars are a vital industry for Europe, so it marks a particularly sensitive target for Trump to get elected.
The trade deal reached between the EU and the US, at Trump's Turnberry golf course in Scotland, set tariffs on most European goods at 15%.
It was a relief for the EU from the 30% tariffs that Trump had threatened to impose as part of his "Liberation Day" wave of tariffs that April.
In return, Europe had agreed to invest in the US and make changes on the continent that were expected to boost US exports.
As tensions rose over President Trump's threats to annex Greenland, the European Parliament in January suspended approval of the agreement.
It later included a clause saying the deal could be suspended if the Trump administration is deemed to have “undermined the objectives of the agreement, discriminated against EU economic operators, threatened the territorial integrity of member states, foreign and defense policies, or engaged in economic coercion.”
It was approved by the European Parliament in March, after disagreement.
Announcing the tariff hike, Trump urged European car manufacturers to move production to the US.
"It is completely understood and agreed that if they produce cars and trucks in US factories, THERE WILL BE NO TARIFF," his post on Truth Social read.
He said billions of dollars are being invested in car and truck factories across the country, figures he described as "a record in the history of car and truck manufacturing."
"There has never been anything like what is happening in America today," Trump added.