Trump Hikes EU Car Tariffs, EU Vows Retaliation

0:00On May 1st, President Trump just dropped a bombshell on the European Union announcing he's jacking up tariffs on cars and trucks imported from there. Starting next week, that rate jumps from 15% to 25%. He says it's because the EU isn't complying fast enough with the trade deal they inked last summer at his golf course in Scotland. This moved blindsided Brussels right before a big holiday weekend. Trump posted on Truth Social that vehicles built in the US by EU companies get a pass on the hike. He also shouted out the massive investments pouring in, $100 billion into new auto plants staffed by American workers. EU lawmakers are fired up. Bern Lang, the chair of their trade committee, called it, proved the US can't be trusted and said they'll hit back hard. The European Commission stayed cool, saying they're committed to the deal, but ready to protect their interests if needed. The deal's been dragging because of the EU's ratification process, calls twice over US threats, like grabbing Greenland and a Supreme Court ruling.

1:03Still, they agreed to buy $750 billion in US energy and pump in $600 billion for investments while steel tariffs stay. At 50%, tensions are rising with Trump eyeing troop pullouts from Italy, Spain, and Germany too. Expect the EU to launch a full-core diplomatic press to salvage this, but for now, lands Atlantic trade just got a whole lot rockier.