Trump raises EU auto tariffs to 25%, putting US–EU trade risk back in focus

🚗 Trump said he will raise tariffs on cars and trucks imported from the EU to 25% next week, citing the bloc’s failure to comply with the previously agreed trade deal.
🏭 The key detail is that vehicles produced at US factories will be exempt, showing Washington is still using tariffs as a tool to push European automakers to accelerate production shifts into the US.
📉 The initial market reaction was sensitive, with several US and European auto stocks coming under pressure after the news. This suggests investors are repricing risks around costs, margins, and supply chains across the auto industry.
🌍 For the EU, this marks a notable escalation after the earlier lower-tariff agreement. If Brussels responds more firmly in the coming days, European auto stocks, EUR/USD, and broader risk sentiment could see stronger volatility in the new week.
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