Trump Spins Tariff Wheel, Decides To Impose 25% Tax On Cars From EUPresident Donald Trump says he’ll impose a 25% tariff on cars and trucks imported from the European Union, beginning sometime “next week.”The tariffs are retaliatory, Trump said, “based on the fact the European Union is not complying with our fully agreed to Trade Deal,” but didn’t elaborate on how, exactly, they’re being noncompliant.It’s unclear what authority Trump is claiming as a means to impose the tariffs. The president previously said the International Emergency Economic Powers Act (IEEPA) allowed him to circumvent Congress to unilaterally tax goods from abroad, but the Supreme Court nixed that in a 6-3 ruling in February.The IEEPA does allow the executive to temporarily impose a 15 percent tariff for up to five months in the event of a “balance of payments crisis.” And in certain, limited, circumstances — like for national security purposes — the president can impose additional tariffs.The U.S. is a lucrative export market for EU vehicle manufacturers. According to the European Automobile Manufacturers’ Association, the U.S. is the second largest export market for European cars after the UK, with around 750,000 cars in 2024, worth around €38.5 billion.See All UpdatesClose