✨ President Donald Trump announced plans to raise tariffs on European cars and trucks entering the United States from 15% to 25%, citing the European Union's partial adherence to the existing trade agreement. The increase would take effect next week, with vehicles produced inside the US by EU manufacturers receiving exemption.

✨ WHAT TRUMP SAID
In a Friday post, Trump stated the move follows his view that the European Union remains outside full alignment with the fully agreed trade deal. The current US tariff on European automobiles sits at 15%.

✨ EU RESPONSE
European Commission President Ursula von der Leyen rejected the claim, affirming the bloc's commitment to the accord and stating the EU stands prepared for every scenario. Top trade officials from both sides plan talks in Paris during the upcoming G7 meeting.

✨ The dispute centers on the 2025 US-EU Turnberry agreement, designed to cap tariffs on automobiles and other goods. Market reaction remained measured, with shares of European automakers showing modest declines alongside broader auto sector moves.

✨ Renewed transatlantic tariff rhetoric adds volatility to auto stocks, luxury exporters, and EUR/USD flows. Watch Paris talks for de-escalation signals, and monitor German exporters like Mercedes-Benz and BMW for price action around the 25% tariff headline. A confirmed deal extension would ease pressure, while sustained escalation could amplify risk-off flows into Bitcoin and gold, both already benefiting from recent macro uncertainty.
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