The US will impose 25% tariffs on cars if the EU does not approve the trade agreement

U.S. Ambassador to the EU Andrew Pazder stated that Washington will impose 25% tariffs on passenger cars and trucks from the European Union “in the near future” if the bloc does not promptly ratify the trade agreement, the review of which has been delayed. This was reported by Bloomberg.

“If we don’t see substantial progress, I think we should expect tariffs to be imposed relatively soon,” Pazder said.

Last week, U.S. President Donald Trump threatened to impose tariffs on vehicles, accusing the EU of being too slow to ratify the agreement reached back in July of last year. At the same time, the European Union is disappointed by a series of moves by Trump that, according to EU officials, undermine Washington’s commitments under these agreements.

Pazder’s statements are increasing pressure on EU negotiators, who are currently trying to finalize amendments to the document.

Under the initial agreements, the EU agreed to lift tariffs on American industrial goods in exchange for a 15% “tariff cap” on most European goods, including vehicles. Thus, the introduction of a 25% tariff on cars would be a direct violation of this condition. Such an increase would hit Germany particularly hard—the EU’s leading economy and the main hub for European automakers.

Pazder also warned that Donald Trump is prepared to withdraw from the agreement entirely if the EU implements any additional measures: “If the agreement is not properly implemented, I believe the United States will terminate it.”

Recall that the EU has warned of its readiness to take retaliatory measures in response to the imposition of a 25% tariff on cars, but would prefer de-escalation and the preservation of the current agreement. The EU representative emphasized that Brussels is fulfilling its obligations within the framework of standard legislative procedures and has kept the U.S. administration informed throughout the process.