President Donald Trump said he will raise U.S. tariffs on cars and trucks from the European Union to 25% next week, accusing the bloc of failing to comply with a previously agreed trade deal.

He said the move follows ongoing disputes over the agreement, which had capped auto tariffs at 15%, and claimed European countries, especially Germany, are not meeting their commitments.

Trump also criticized German automakers and linked the decision to broader tensions with European leaders over trade and foreign policy.

The European Commission warned it could take retaliatory measures if the U.S. violates the agreement, the AFP has reported.

The dispute adds further strain to U.S.-EU economic relations, particularly affecting major exporters like Germany.