Washington: U.S. President Donald Trump has declared that his administration will impose a 25 percent tariff on cars and trucks imported from the European Union starting next week. Trump claims that this measure is in response to the EU's failure to comply with a bilateral trade agreement with the United States.

According to Yonhap News Agency, Trump made this announcement via a social media post, emphasizing that automobile manufacturers that produce their vehicles within the U.S. will not be subject to these tariffs. He stated on Truth Social that the EU's non-compliance with the trade deal necessitated the tariff increase. Previously, the Trump administration had reduced these tariffs to 15 percent, down from a total rate of 27.5 percent, which included a specific tariff and prior levies.

Trump further elaborated that the intent behind the tariff hike is to encourage the EU to accelerate the relocation of its auto manufacturing operations to the United States. He highlighted that the U.S. is currently witnessing a record investment of over $100 billion in auto plants from various countries, including Japan, South Korea, Canada, and Mexico. However, he noted that the EU has not adhered to the existing trade agreements.

The announcement of the tariff increase coincided with Trump's criticism of NATO members for their reluctance to support his request for naval assistance in securing the Strait of Hormuz. Additionally, Trump mentioned that his administration is considering a reduction of American troops in Germany, a decision expected to be made soon.

In his social media post, Trump also emphasized his commitment to revitalizing America's auto manufacturing industry, mentioning that numerous automobile and truck plants are under construction with significant investment. He described the current developments in the U.S. auto industry as unprecedented.

The bilateral trade deal from last year also included South Korean autos, which are subject to a 15 percent tariff in the U.S.