EU Parliament Trade Chief Bernd Lange: Trump's 25% Tariff Threat on EU Cars and Trucks 'Unacceptable'
The head of the European Parliament's trade committee, Bernd Lange, called President Donald Trump's threat to boost tariffs on EU cars and trucks 'unacceptable', and criticized the U.S. for being an unreliable partner. Trump on May 1 said he would boost levies on cars and trucks from the European Union to 25%, claiming that the bloc had failed to fully comply with a trade agreement struck with the U.S. 'This latest move demonstrates just how unreliable the U.S. side is,' Lange told Bloomberg News. 'This is no way to treat close partners.'
Under the trade deal — signed in July 2025 — the EU agreed to erase levies on U.S. industrial goods in exchange for a 15% tariff ceiling on most EU products. Officials in the EU say the U.S. hasn't complied with the accord, pointing to the fact that Washington widened a 50% tariff on European steel and aluminum in August 2025 to include hundreds of new products. The U.S. has implemented certain provisions of the deal, capping tariffs on many EU exports at the agreed 15% level. The European Parliament has repeatedly blocked ratifying the agreement after the U.S. Supreme Court struck down Trump's use of emergency powers to impose tariffs.
From a supply chain perspective, the standoff is critical along three axes. First, automotive supply chains: the EU exports more than €40 billion of vehicles annually to the U.S. — Volkswagen, BMW, Mercedes-Benz, Stellantis and Renault rely on dense cross-border tier-1 and tier-2 dependencies for their North American models in accessories, engine parts and electronic components; a 25% tariff would disrupt JIT flows through Mexico and Slovakia. Second, steel-aluminum derivatives: the August 2025 widened tariffs already cover hundreds of SKUs spanning auto parts, white goods and defense components — Türkiye's TIR transport sector and automotive sub-industry exporters face indirect knock-on pressure. Third, EU-U.S. AI Act coordination and digital trade side-talks risk slowing in the wake of this dispute; logistics firms' plans for e-CMR, blockchain trade finance and customs single windows on the transatlantic axis may stall.
Key Takeaways:
1. European Parliament trade committee head Bernd Lange called Trump's 25% tariff threat on EU cars and trucks 'unacceptable.'
2. Trump made the threat on May 1, claiming the EU had failed to fully comply with the July 2025 trade deal.
3. The EU argues the U.S. breached the deal in August 2025 by widening 50% steel-aluminum tariffs to cover hundreds of new product lines.
4. The European Parliament has repeatedly blocked ratification after the U.S. Supreme Court struck down Trump's emergency tariff powers.
5. Annual €40 billion automotive exports, JIT supply flows and Türkiye's automotive sub-industry face indirect pressure; transatlantic e-CMR and blockchain trade finance plans risk stalling.
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