Trump Raises European Car Import Tariffs to 25 Percent

WASHINGTON DC, KOMPAS.com – US President Donald Trump has once again sparked global trade tensions. This time, the target of his policy is the automotive industry in the European Union.

Trump has announced plans to raise import tariffs on vehicles from Europe to 25 per cent, which are said to take effect next week.

This policy is being taken because Trump believes the European Union is not complying with the agreed trade deal. However, he did not clearly detail the form of violation in question.

Through this policy, Trump is seen as attempting to pressure and encourage European automakers to relocate their production bases to the US to avoid higher import tariff burdens.

The tariff increase amounts to 10 per cent from the previous level of 15 per cent.

Trump believes this step will provide additional revenue of billions of US dollars to the state coffers. In addition, he hopes the policy can accelerate the realisation of new factory investments from European automakers in the US.

On the other hand, building new production facilities is not a quick matter. The process can take years before they are fully operational.

This step is also viewed as a form of political pressure on Europe. Previously, Trump had criticised the European Union and its member states for not providing support in the Iran conflict.

In response to the policy, European officials have expressed strong objections.

European officials describe Trump’s move as unacceptable and view the policy as reinforcing the notion that the US is an unreliable partner.