President Trump vows to hike import taxes on European vehicles to a quarter of their value.

President Donald Trump announced on Friday that US tariffs on cars and trucks from the European Union will be increased next week, citing the bloc's alleged non-compliance with a prior trade agreement.

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This trade deal, reached last summer, had established a 15 percent cap on US tariffs for EU autos and parts, a rate lower than the 25 percent duty imposed on many other trading partners.

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Trump declared on Friday, "Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States."

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He further stated on his Truth Social platform, "The Tariff will be increased to 25%," without providing additional justification for the planned hike.

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The announcement came a day after Trump renewed his criticism of German Chancellor Friedrich Merz, telling him to focus on ending the Ukraine war rather than "interfering" on Iran.

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Germany is likely to be significantly impacted by a sharp tariff on cars and parts, given its substantial role in EU auto exports.