President Donald Trump remarked on Truth Social that he would boost the tariff rate on EU cars and trucks to 25%.

The White House noted the president would create the changes under Section 232.

The Supreme Court struck down Trump’s “reciprocal” tariffs earlier this year, and Europe warned that its trade deal with Washington could be in jeopardy.

President Donald Trump mentioned he would growth tariffs charged to the European Union for cars and trucks to 25%, without saying what authority he would employ to raise the levies.

“Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States,” he wrote on Truth Social on Friday. “The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF.”

The Supreme Court ruled in February that a large part of Trump’s tariff agenda was illegal. The president’s “reciprocal” tariffs were invoked using a novel reading of the International Emergency Economic Powers Act, or IEEPA, but the high court mentioned in a 6-3 majority that the law that undergirds those import duties “does not authorize the President to impose tariffs.”

Shortly after the Supreme Court ruling, Trump mentioned he signed an executive order imposing a fresh 10% “global tariff” rate to effectively replace the IEEPA duties, though those tariffs came with a 150-day time limit under Section 122 of the Trade Act of 1974. He then remarked he would expansion the global rate to 15%.

The EU in February had warned that its trade deal with the U.S. could be in jeopardy after the recent tariff rate was stated and postponed its planned vote on the agreement.

The European Union stated it is following standard legislative practice and keeping the U.S. administration up to date. This also touches on aspects of investors.

“We maintain close contact with our counterparts, including as we also seek clarity on US commitments,” a a European Commission spokesperson mentioned. “We remain fully committed to a predictable, mutually beneficial transatlantic relationship. Should the US take measures inconsistent with the Joint Statement, we will keep our options open to protect EU interests.”

A White House official commented in a statement Friday that the EU has “failed to produce substantial progress on their agreed-upon commitments” under a trade agreement between the countries.

the official stated, “The White House has always been clear that the President reserves the right to adjust tariff rates if our trade deal partners fail to abide by their commitments.”

The Trump administration last year broadly implemented 25% tariffs on vehicles and certain auto parts imported into the U.S., citing national security risks under Section 232. Those levies are still in place, and the White House stated Trump would surge the EU’s levies under Section 232.

The European automakers that could most be impacted by a change in tariff rate would be Mercedes, BMW and Volkswagen, which import a large percentage of the vehicles they liquidate in the U.S. from their plants in Europe.