Bernd Lange, who chairs the European Parliament's trade committee, disputed Trump's characterization, telling Bloomberg the U.S. had been the party repeatedly breaching the agreement — pointing to American tariffs on steel and aluminum imports. Lange said parliament is drafting legislation to ratify the trade deal and expects to finalize it in June.
The terms of the trade deal had the E.U. agreeing to cap tariffs on most of its goods entering the U.S. at 15%, while Europe dropped duties on American industrial imports. Ratification had stalled on two separate occasions, according to Bloomberg — first when Trump's threats toward Greenland alarmed European legislators, and a second time following the Supreme Court's invalidation of his broader tariff framework. Metals tariffs had emerged as a central point of contention; in August, Washington expanded its 50% steel and aluminum duties to cover hundreds of product categories that had previously been excluded.
Among those facing the greatest exposure are Mercedes, BMW, and Volkswagen — brands that rely heavily on European factories to supply vehicles sold in the American market, according to CNBC. Stellantis $STLA, whose European lineup of Alfa Romeo, Fiat, and Maserati vehicles is shipped to American consumers from overseas plants, also stands to be significantly affected. Stellantis stock fell as much as 3.6% Friday.
This announcement brings more uncertainty to an industry still dealing with the costs of earlier trade measures. Since 2025, U.S. tariffs have cost automakers at least $35.4 billion, according to Automotive News. Companies like Toyota $TM, GM, Ford $F, Stellantis, BMW, Mercedes-Benz, and Volkswagen have reported or expect bills over $1 billion. The Trump administration had already set 25% tariffs on imported vehicles and some auto parts under Section 232 for national security reasons, and those tariffs are still in effect.
The E.U.-U.S. trade relationship had shown signs of stabilizing before Friday's announcement. The E.U. suspended ratification of its trade deal with the U.S. earlier this year after the Supreme Court ruled that Trump lacked authority under the International Emergency Economic Powers Act to impose his sweeping "reciprocal" tariffs. Trump subsequently imposed a 15% global tariff rate under a separate legal authority. In the weeks before Friday's announcement, both parties had signaled renewed willingness to push the agreement across the finish line, and Washington had offered a concession on its methodology for calculating the expanded metals levies.
