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U.S. Signals 25% Tariff on EU Cars After Paris Talks Show No Breakthrough

EU leaders reject a U.S. claim of non‑compliance with last year’s deal.

New cars, imported or waiting to be exported, are parked in the port of Zeebrugge, Belgium, July 18, 2025. REUTERS/Yves Herman/File Photo
French President Emmanuel Macron addresses a media conference during the EU-Armenia summit at the Presidential Palace in Yerevan, Armenia, Tuesday, May 5, 2026. (AP Photo/Anthony Pizzoferrato)
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U.S. Trade Representative Jamieson Greer speaks to the media, on the day he attends a working lunch with EU ministers responsible for trade, in Brussels, Belgium, November 24, 2025. REUTERS/Piroschka van de Wouw//File Photo

Overview

  • U.S. Trade Representative Jamieson Greer told CNBC on Monday that the White House is moving forward with a 25% tariff on EU-made cars.
  • President Donald Trump announced Friday he would raise the auto rate to 25% from the 15% set under the 2025 Turnberry agreement, citing EU non‑compliance.
  • EU trade chief Maroš Šefčovič met Greer in Paris on Tuesday and urged a return to the 15% ceiling, and no resolution was announced after the talks.
  • EU institutions are working to finish legislation that would cut EU duties on U.S. industrial goods to carry out the deal as member states press for speed.
  • German auto stocks fell Monday as investors priced in higher costs for luxury models imported to the U.S., and EU leaders said the bloc stands ready with countermeasures, including its anti‑coercion tool.