"The Turnberry Agreement was supposed to be the floor. Signed at Donald Trump's golf resort in Scotland last July, the deal between the United States and the European Union set a 15 per cent tariff ceiling on nearly all EU goods entering America, including cars, car parts, semiconductors, and pharmaceutical products."
"On Friday, Trump announced on Truth Social that the alternative is back. He will raise tariffs on EU cars and trucks to 25 per cent next week, accusing the bloc of failing to comply with the deal. He did not specify what the EU has failed to do."
"The European tech industry warned months ago that tariffs would hit both hardware and software. The question now is whether the cars are the beginning or the end of the escalation."
Trump announced a 25% tariff increase on EU cars and trucks, claiming the EU's non-compliance with the Turnberry Agreement. The agreement, signed in July 2025, established a 15% tariff ceiling on EU goods, including cars and semiconductors, in exchange for the EU eliminating tariffs on US industrial goods. The EU's acceptance of the deal was due to the asymmetric nature of the agreement. The European tech industry warned that tariffs would negatively impact both hardware and software sectors, raising concerns about future trade escalations.
Read at TNW | Cars
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