Washington: In a statement, Trump said the new tariffs would apply to all European vehicles entering the United States unless manufacturers shift production to American soil. “It is fully understood and agreed that, if they produce cars and trucks in U.S.A. plants, there will be no tariff,” he stated.

The decision marks a significant escalation in trade friction between the US and the EU, with Trump accusing the bloc of not honoring commitments under last year’s agreement. The tariffs are set to come into effect “next week,” targeting one of Europe’s most valuable export sectors.

Despite a recent ruling by the US Supreme Court limiting the president’s use of emergency powers to impose tariffs, the administration clarified that these duties fall under a separate legal framework and are therefore not impacted by the court’s decision.