by Trump postponed tariff increases for the EU
Trump’s recent actions on tariff policy resemble a rollercoaster for European automakers. First, he announced a sharp increase in tariffs to 50% starting June 1, and then unexpectedly postponed this decision. Such instability creates significant pressure on businesses, especially in the automotive industry.
As reported, Trump explained his initial statement about raising tariffs as dissatisfaction with the slow progress in trade negotiations with the EU. However, after a conversation with European Commission President Ursula von der Leyen, he changed his position.
“We had a very good conversation, and I agreed to postpone the deadline,” Trump told reporters.
The tariff situation is already affecting automakers’ business decisions. The CEO of Volvo warned that the company might cancel shipments of the electric SUV EX30, which is produced in Belgium, if the U.S. and EU fail to reach a compromise. Meanwhile, British manufacturers such as Land Rover have already secured more favorable terms with a 10% tariff, which has caused dissatisfaction among U.S. automakers.
This situation highlights the complexity of modern international trade relations, where political decisions can drastically change the rules of the game for businesses. Uncertainty about future tariff rates forces companies to reconsider their strategies and supply chains, which could have long-term consequences for the global economy.
