Donald Trump announced on Friday that starting next week, he will increase tariffs on cars and trucks imported from the European Union, raising the rate to 25 percent. He stated that this action is being taken because the EU is reportedly failing to uphold a “fully agreed trade deal” between the two sides. In his announcement, Trump specified that while these tariffs will affect EU vehicles entering the United States, cars manufactured within the U.S. should remain exempt. He also emphasized that significant investments are currently being made to establish new production sites within the United States.