Trump EU Auto Tariffs 25%: EU Leaders Split as BMW and Mercedes Prices Set to Rise

# Trump EU Auto Tariffs 25%: EU Leaders Split as BMW and Mercedes Prices Set to Rise

> **Quick answer:** President Trump announced a 25% tariff on all EU cars and trucks on May 1, 2026, up from 15% under the July 2025 Turnberry Agreement. The EU is divided: France and Spain want retaliation, Germany and Italy want to protect the deal through negotiation. US consumers buying imported BMW, Mercedes-Benz, and Volkswagen models could face price increases of $5,000 to $15,000 depending on the vehicle. Cars built at European brands' US plants — including BMW's South Carolina X-series and Mercedes' Alabama SUVs — are not affected.

Trump's 25% tariff on EU automobiles and trucks, announced May 1 and set to take effect as early as May 5-9, has fractured the European response and landed squarely on the wallets of American car buyers. Here is what the EU split means for trade stability, which cars cost more, and what European policymakers are actually saying behind the diplomatic language.

This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.

## Trump EU Auto Tariffs 25 Percent: What Happened and Why Now

President Trump announced on Truth Social on May 1, 2026, that he would raise tariffs on European Union cars and trucks to 25%, up from the 15% ceiling agreed in the Turnberry Agreement struck with European Commission President Ursula von der Leyen in July 2025. Trump's stated justification: the EU is "not complying with our fully agreed to Trade Deal."