US President Donald Trump has proposed raising tariffs on EU-made cars and trucks from 15% to 25%, citing concerns that the European Union is not upholding its commitments under the Turnberry trade deal.
In the agreement, which was reached last summer, the EU agreed to eliminate tariffs on US industrial goods. It also sets a 15% ceiling on US tariffs applied to most EU goods.
But the deal is still being finalized within the EU and the latest tariff threats are adding uncertainty to the process.
Experts warn higher tariffs could severely impact Europe's auto sector, particularly Germany's car industry, potentially costing up to €15 billion ($17.6 billion) in the short term and straining US-EU trade relations.
This video summary was created by AI from the original DW script. It was edited by a journalist before publication.
