Trump threatens 25% tariffs on EU cars, citing trade deal noncompliance

US President Donald Trump announced on Friday that he will impose 25% tariffs on cars and trucks from the European Union next week, a move that could destabilize the global economy. Trump claimed the EU is not complying with the Turnberry Agreement, a trade deal he and European Commission President Ursula von der Leyen reached in July 2025. That deal set a 15% tariff ceiling on most EU goods. However, the US Supreme Court recently ruled that Trump lacked legal authority to declare an economic emergency and impose tariffs on EU goods, reducing the ceiling to 10%. The Trump administration has since used other laws to levy new import taxes. The Turnberry Agreement, named after Trump's golf course in Scotland, had been reaffirmed by both sides before the court ruling cast doubt on its status.