Trump says he will hike tariffs on EU cars to 25%

5 hours agoArchie MitchellandJonathan Josephs,Business reportersGetty ImagesDonald Trump is increasing the tariffs charged on cars and trucks imported from the European Union to 25% in a sharp escalation of trade tensions with Brussels. The US president accused the EU of "not complying with our fully agreed to trade deal" in a post on Truth Social, but did not explain how."I am pleased to announce that… next week I will be increasing Tariffs charged to the European Union for Cars and Trucks," Trump said on Friday.The European Commission responded: "We will keep our options open to protect EU interests".The Commission said the EU was adhering to its commitments but was also seeking "clarity" from the US around its commitments.In targeting the automotive sector Trump has chosen a particularly sensitive target, as car manufacturing makes up a significant proportion of Europe's economy.That marked a reprieve for the EU from the 30% tariffs Trump had threatened to impose as part of his sweeping "Liberation Day" tariffs. In exchange, Europe agreed to invest in the US and make changes expected to boost US exports.However in the following months tensions mounted over President Trump's threats to annex Greenland, a self-governing Danish territory. In January the