• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil

2

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

3

Current price of oil as of July 8, 2026

1

Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil

2

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

3

Current price of oil as of July 8, 2026
EconomyTariffs
Europe

Trump says he’ll hike EU auto tariffs to 25%, jolting a world economy that really didn’t need it

By
Josh Boak
Josh Boak
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Josh Boak
Josh Boak
and
The Associated Press
The Associated Press
Down Arrow Button Icon
May 1, 2026, 2:39 PM ET
trump
President Donald Trump signs a presidential permit regarding pipeline construction in the Oval Office of the White House, Thursday, April 30, 2026, in Washington. AP Photo/Alex Brandon
Add Fortune on Google for similar content.

President Donald Trump said on Friday that he will increase the tariffs charged on cars and trucks from the European Union next week to 25%, a move that could jolt the world economy at a fragile moment.

Recommended Video

Trump said in a social media post that the EU “is not complying with our fully agreed to Trade Deal,” though he did not flesh out his objections in the post.

Asked by reporters on Friday about the increase in import taxes as he departed the White House for Florida, Trump said the EU was not “as usual” adhering to last year’s trade framework, without detailing the source of the tension. He added that he believed the shift to higher tariffs “forces them to move their factory production much faster” to the U.S.

Trump and European Commission President Ursula von der Leyen had agreed to the trade deal last July. It set a tariff ceiling of 15% on most goods, though the Supreme Court this year ruled against the legal authority that Trump had used to charge that tax. This left Trump looking for substitute authorities, and his administration has imposed a 10% tax while investigating trade imbalances and national security issues to put in new tariffs to make up for lost revenues.

The tariffs hit at a moment when the Iran war has crushed the world economy with expectations of slower growth and higher inflation, as oil and natural gas prices have risen due to the effective closure of the critical Strait of Hormuz after strikes by the U.S. and Israel began at the end of February.

At the same time, Trump faces political pressure in the U.S. going into November’s midterm elections because of rising levels of inflation. Trump, a Republican, returned to the White House last year on the explicit promise that he could quickly tame prices that jumped in the aftermath of the government’s response to the coronavirus pandemic, but higher energy costs pushed annual inflation in March to 3.3%, which was higher than what he had inherited.

Just 30% of U.S. adults approved of Trump’s handling of the economy, according to the latest poll by The Associated Press-NORC Center for Public Affairs Research.

Neither EU nor Trump administration officials responded to questions about the tariff increase and whether or how the agreement had been violated. But Trump has had a testy relationship with Europe, having threatened earlier this year to take control of Greenland and later blasting NATO allies for not providing more support to the U.S. for the Iran war.

Both the U.S. and the EU had previously confirmed their commitment to preserving the trade framework, known as the Turnberry Agreement, which was named after Trump’s golf course in Scotland.

The status of the 2025 deal was first cast into doubt after the Supreme Court this year ruled that the president lacked the legal authority to declare an economic emergency and charge tariffs on goods from the members of the EU and other states.

The alternative tariffs being explored by the Trump administration could ultimately put the agreement with the EU in risk of violation, though European Commissioner for Trade and Economic Security Maroš Šefčovič told reporters last week that the relationship with the U.S. had become more positive over the past year.

To raise tariff rates, Scott Lincicome of the libertarian Cato Institute’s Center for Trade Policy Studies said, the president would likely use Section 232 of the Trade Expansion Act of 1962, which allows for duties on national security grounds.

Trump imposed 25% Section 232 tariffs on foreign autos in March 2025, but those tariffs were then lowered as part of the trade framework with the EU.

Lincicome also said Trump’s threats are “just another example of why these trade deals are vaporware. They all rely on handshakes and winks and hopes that Trump doesn’t get mad about something.’’

He said that as best he could tell the Europeans “were basically complying with the framework.” The European Parliament has been moving slowly on the agreement but was expected to finish work on the deal next month.

The EU had said it expected the bilateral deal would save European automakers about 500 million to 600 million euros ($585 million to $700 million) a month.

The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat.

“A deal is a deal,” the European Commission said in February after the Supreme Court ruling. “As the United States’ largest trading partner, the EU expects the U.S. to honor its commitments set out in the Joint Statement — just as the EU stands by its commitments. EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”

___

AP writer Paul Wiseman contributed to this report.

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Josh Boak
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Economy

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Economy

This year’s El Niño is not ‘run-of-the-mill’—and it could rival one that killed 23,000
EnvironmentWeather and forecasting
This year’s El Niño is not ‘run-of-the-mill’—and it could rival one that killed 23,000
By Seth Borenstein and The Associated PressJuly 9, 2026
1 hour ago
Current price of Bitcoin for July 9, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for July 9, 2026
By Joseph HostetlerJuly 9, 2026
2 hours ago
Current price of oil as of July 9, 2026
Personal FinanceOil
Current price of oil as of July 9, 2026
By Joseph HostetlerJuly 9, 2026
2 hours ago
U.S. President Donald Trump speaks to members of the press for the first time aboard the new Air Force One while in flight from RAF Mildenhall AFB to Joint Base Andrews July 8, 2026 after leaving the United Kingdom.
EconomyIran
U.S.-Iran talks are ‘eerily similar’ to Trump’s bumpy China dealings in his first term, says top economist—don’t rule out further oil price spikes
By Eleanor PringleJuly 9, 2026
4 hours ago
A woman, standing in a grocery store, looks at a bag of apples.
EconomyTariffs
Trump has created a ‘trickle up’ tariff economy that means U.S. companies aren’t done hiking consumer prices over import taxes
By Sasha RogelbergJuly 9, 2026
8 hours ago
‘Project 2029’ floats free child care—or $1,000 to stay home
Politicschild care costs
‘Project 2029’ floats free child care—or $1,000 to stay home
By Simone Foxman and BloombergJuly 8, 2026
17 hours ago

Most Popular

Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil
Newsletters
Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil
By Jim EdwardsJuly 8, 2026
1 day ago
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
Success
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
By Preston ForeJuly 6, 2026
3 days ago
Current price of oil as of July 8, 2026
Personal Finance
Current price of oil as of July 8, 2026
By Joseph HostetlerJuly 8, 2026
1 day ago
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
4 days ago
Current price of gold as of July 8, 2026
Personal Finance
Current price of gold as of July 8, 2026
By Danny BakstJuly 8, 2026
1 day ago
Mining CEO worth $24 billion nearly drowned and had to break his own leg in a freak hiking accident—he used the recovery time to go back to school
C-Suite
Mining CEO worth $24 billion nearly drowned and had to break his own leg in a freak hiking accident—he used the recovery time to go back to school
By Eleanor PringleJuly 8, 2026
23 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.