It was less than a week ago when US President Donald Trump, frustrated with his European trading partners, announced higher tariffs for EU cars and trucks. Until the very end, Trump did not give any indication as to when exactly the new surcharges should be levied. Now the president is reversing the role. An overview of the current status:
What does Trump want now?
In the customs dispute with the European Union, US President Donald Trump sets a deadline for the implementation of the trade agreement. If the EU does not fulfill its part of the agreement by the 250th anniversary of the USA – July 4th – the tariffs would “unfortunately immediately rise to a much higher level,” Trump said on his Truth Social platform.
The president was “patiently waiting” for the EU to fulfill its part of the trade agreement. “It was promised that the EU would fulfill its part of the agreement and, according to the agreement, reduce its tariffs to ZERO!”. Trump’s latest threat was preceded by a “very good conversation” with EU Commission President Ursula von der Leyen.
In a post on X, she emphasized that both sides remained fully committed to implementing the trade deal. Good progress is being made towards reducing tariffs by early July, it said.
What does this mean for the threatened tariff increase?
In theory, surcharges on cars and trucks imported from the EU to the US should rise from 15 to 25 percent this week. At least that’s what Trump threatened last Friday without warning. However, he left a specific start date open, and the White House did not provide any concrete information about it. Such tariff increases would have particularly affected Germany as a car manufacturing nation.
An inquiry from the German Press Agency to the White House as to whether the recently threatened increase in tariffs on imports of cars and trucks would now be off the table by the new deadline initially remained unanswered.
It also remained unclear whether Trump meant the announced import taxes on EU cars and trucks by the significantly higher tariffs after the deadline on July 4th passed. It would be conceivable – as would new tariffs, which Trump still has to formulate in two months.
What exactly is the USA accusing the EU of?
A White House official had previously made it clear in response to a dpa request that, from the United States’ perspective, the EU had not made any significant progress in fulfilling its agreed obligations – for example with regard to trade barriers in the automotive sector, digital services and CO2 taxes.
The White House has always made it clear that Trump reserves the right to adjust tariff rates if trading partners do not meet their obligations, the official said of the threatened tariff increase.
What is the current status of the EU-US trade agreement?
In mid-August 2025, Trump and von der Leyen agreed in a framework agreement on a tariff cap of 15 percent on most EU goods imports into the USA. The rate should also apply to European cars and car parts. In return, the EU committed to eliminating tariffs on US industrial goods and easing market access for US agricultural products such as pork and dairy products.
However, further tariff threats from Trump in the Greenland conflict and uncertainty after a court decision that declared many US tariffs illegal had slowed the implementation of the customs deal. The European Parliament announced in March that it wanted to make the further implementation of the agreement with the USA subject to strict conditions.
In the EU, negotiations are currently ongoing between the European Parliament and the member states that are necessary for the full implementation of the customs deal. No agreement was reached at a meeting of representatives on Wednesday.
What reactions are there from the EU?
The EU Commission is responsible for the trade policy of the international community. In an initial reaction last week, the Brussels authority reserved the right to take countermeasures if Trump followed through on his announcement of a tariff increase on cars and trucks.
However, if the USA takes measures that contradict the common trade agreement, it reserves “all options to protect the interests of the EU,” said a spokeswoman.
Bernd Lange, Chairman of the Trade Committee in the European Parliament, emphasized that the European Parliament is working on implementing the agreement. “While the EU is fulfilling its commitments, the US side keeps breaking its commitments,” he continued.
And what about the court decision on global tariffs?
The court in New York declared Trump’s temporary tariffs on imports from around the world illegal. With the temporary tax of 10 percent, the President exceeded his authority because he misinterpreted the trade law used as a basis.
The tariffs, which were supposed to apply for 150 days, may now no longer be levied. The US government must reimburse taxes paid by the three plaintiffs since February.