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Business and Trade news

Trump raises EU auto tariffs to 25 per cent, flags pressure on trade deal

  • BY India News Newsdesk
  • May 2, 2026
  • 0 COMMENTS

Washington, May 1 (IANS) US President Donald Trump on Friday said he has raised tariffs on cars and trucks from the European Union to 25 per cent, accusing the bloc of failing to comply with an existing trade agreement, while also signalling continued uncertainty over negotiations with Iran.

“We raised the tariffs on cars coming in from the European Union because the European Union was not adhering to the trade deal we have,” Trump told reporters before departing on Marine One.

“I raised the tariffs on cars and trucks to 25 per cent. That’s billions of dollars coming into the United States and it forces them to move their factory production much faster.”

He said the move was aimed at pushing manufacturers to shift production to the United States. “We have right now in the United States over $100 billion of car plants being built — it’s a record. We’ve never had anything like it,” Trump said, citing investments from Japan, South Korea, Canada and Mexico.

On Iran, Trump said talks were ongoing but far from complete. “They want to make a deal, but I’m not satisfied with it, so we’ll see what happens,” he said.

He described Iran’s leadership as fragmented. “They all want to make a deal, but they’re all messed up,” Trump said, adding that the country’s leadership was “very disjointed” and unable to agree internally.

Trump said Iran’s military capacity had been severely weakened. He asserted that the country had “no navy” and “no air force”, and that its leadership was struggling to function effectively.

Despite the rhetoric, Trump indicated he preferred a diplomatic outcome. “Do we want to go and just blast the hell out of him and finish him forever, or do we want to try and make a deal?” he said. “I’d prefer not, on a human basis.”

He also defended his decision not to seek Congressional approval for military action, saying such authorisation had “never been sought before” and was widely viewed as “totally unconstitutional”.

On the domestic front, Trump pointed to economic indicators as evidence of strength. “The stock market is hitting record numbers. We have more people working in the USA today than we’ve ever had working,” he said.

He acknowledged high fuel prices but said they would fall once tensions ease. “When the war ends… gasoline prices are going to tumble,” Trump said, referring to large volumes of oil currently unable to move through key shipping routes.

Trump reiterated his “America First” approach in economic decisions, including a possible intervention to support Spirit Airlines. “We’d like to save the jobs, but only if it’s a good deal… we have to come first,” he said.

He also said he had “great respect for Pakistan” and that its leadership was “working with us” on regional matters.

Trump confirmed plans for a future visit to China, calling it “an amazing event”, and said Lebanese and Israeli leaders were expected to visit the White House.

The tariff move marks a renewed escalation in US-EU trade tensions, particularly in the automotive sector, which has long been a focal point of disputes over tariffs and market access.

US policy towards Iran has combined sanctions, diplomacy and military pressure in an effort to curb Tehran’s nuclear ambitions. Talks have remained fragile, with divisions within Iran’s leadership complicating efforts to reach an agreement.

–IANS

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