US accuses EU of failing to meet trade commitments as Trump plans tariff hike

US officials have argued that the EU has not yet fully enacted its commitments, including tariff reductions and regulatory changes, while US President Donald Trump has announced plans to reimpose higher tariffs on EU-made automobiles and trucks, raising the rate from 15 per cent to 25 per cent, Politico reports.

Critics have described the move as protectionist, but the US administration said it reflects ongoing disputes with the European Union.

At the start of Trump’s second term, the United States was engaged in a highly imbalanced trade relationship with the EU.

American exporters, according to the administration’s position, faced significant tariff and non-tariff barriers across sectors, including agriculture and digital services, while European exports — including cars, machinery, pharmaceuticals, food and luxury goods — entered the US market at comparatively lower tariff levels.

The US trade deficit in goods with the EU reportedly exceeded $235 billion in 2024.

In March 2025, the US imposed a 25 per cent tariff on imported automobiles, including those from the EU.

When combined with existing Most Favoured Nation duties, this resulted in an effective tariff rate of 27.5 per cent on EU-manufactured vehicles.

By May 2025, negotiations between Washington and Brussels had stalled.

Trump stated at the time that discussions were “going nowhere” and proposed raising tariffs on all EU goods to 50 per cent from 1 June. The European Commission President Ursula von der Leyen subsequently requested an extension to allow further talks, stating that “Europe is ready to advance talks swiftly and decisively”.

Following this, the US agreed to delay implementation. However, by July 2025, Trump issued a letter indicating that tariffs on EU goods would increase to 30 per cent from 1 August if no agreement was reached.

On 27 July 2025, Trump and von der Leyen reached a political understanding, referred to as the Turnberry Agreement.

A subsequent framework announced on 21 August outlined a reciprocal trade arrangement under which the US would apply a 15 per cent tariff on selected EU exports, including cars and pharmaceuticals, while the EU committed to eliminating tariffs on US industrial goods and reducing certain non-tariff barriers.

The US administration says it implemented its tariff commitments at the agreed 15 per cent level for most EU imports, including automobiles and parts, while emphasising that full implementation depended on reciprocal measures from the EU.

The European Parliament has proposed amendments to the agreement, including safeguard clauses and time-limited provisions not included in the original framework, according to US descriptions of the talks.

The administration has characterised these developments as a failure to implement agreed terms, while European officials have not publicly accepted that interpretation.

In response, Trump has moved to reinstate 25 per cent tariffs on EU passenger cars and light trucks, a measure the White House describes as targeted and limited in scope. It applies to finished vehicles but not to parts, nor to vehicles assembled in the United States by European manufacturers.

Following a recent call with von der Leyen, Trump agreed to delay the reimposition deadline to 4 July 2025, with both sides continuing discussions through ongoing negotiations.

The White House maintains that the US remains willing to honour the framework agreement provided that reciprocal commitments are fully implemented, while EU officials continue to seek further clarification and adjustment of its terms.

By Bakhtiyar Abbasov