Build in America or Bleed 25%: Trump to EU

May 01, 2026 (MLN): President Donald Trump is done playing nice with Europe.

In a fiery post that sent shockwaves through global auto markets, Trump announced he will slap a 25% tariff on all cars and trucks imported from the European Union into the United States, accusing Brussels of failing to honour a "fully agreed" trade deal.

The message was blunt, bold, and classically Trump: manufacture in America, or face the consequences.

The White House's offer to European automakers couldn't be simpler, or more loaded. Set up shop on American soil, hire American workers, and pay zero tariffs.

Keep building in Europe and shipping to the US? That'll cost you a quarter of the sticker price in duties.

For giants like Volkswagen, BMW, Mercedes-Benz, Stellantis and Volvo, the math just got very uncomfortable.

Trump didn't just threaten. He boasted. The post pointed to over $100 billion in auto plant investments already underway across the US, calling it "a RECORD in the History of Car and Truck Manufacturing."

With new American plants staffed by American workers "opening soon," Trump framed the tariff not as punishment, but as the final nudge Europe needed to get the message.

The EU has repeatedly warned it will retaliate against any new American tariffs with measures of its own, potentially targeting US goods ranging from bourbon to Boeing aircraft.

A 25% levy on European vehicles, one of the bloc's most prized exports, is almost certain to trigger a swift and sharp response.

Trade analysts warn that European car prices in the US could surge by thousands of dollars, squeezing consumers and dealerships alike, while European economies heavily dependent on auto exports,  particularly Germany, brace for turbulence.

Source: @realDonaldTrump, Truth Social

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