Donald Trump is increasing the tariffs charged on cars and trucks from the European Union to 25% in a sharp escalation of trade tensions with Brussels.

The US president accused the EU of "not complying with our fully agreed to 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 charged to the European Union for Cars and Trucks," Trump said on Friday.

In targeting the automotive sector Trump has chosen a particularly sensitive target, as car manufacturing makes up a significant proportion of Europe's economy.

Talks about how to move forward on the EU-US deal, agreed last July, had stalled over a dispute about steel and aluminium. Major European economies such as Germany and France had rejected US plans to adjust tariffs on a wide range of goods.