Trump says he will raise tariffs on EU autos to 25%

U.S. President Donald Trump announced on May 1, 2026, that he will raise tariffs on cars and trucks imported from the European Union to 25%, saying the EU has not complied with a trade deal. He said the increase would take effect next week but exempt vehicles made in U.S. plants. The move is a government policy announcement with potential market implications: it could pressure U.S. auto and parts suppliers, raise input costs and consumer prices, and weigh on trade-sensitive sectors and broader equity indices such as the S&P 500. European automakers and exporters face increased downside risk and potential retaliatory measures, adding geopolitical and policy risk for markets. The announcement introduces near-term uncertainty for investors assessing sector allocations and supply-chain exposure.