On May 1 local time, U.S. President Trump stated that due to the European Union's failure to fulfill the trade agreement previously reached between both sides, the United States will impose tariffs on automobiles and trucks imported from the EU next week, raising the rate to 25%.

Trump said that companies producing in the United States would be exempt from these tariffs.

The European Commission spokesperson said on May 1: "If the United States takes measures inconsistent with the transatlantic trade agreement, we will retain all options available to safeguard EU interests."

Trump’s announcement of this "tariff bomb" on May 1, Labor Day, marks the formal shift of U.S.-EU trade relations from a "fragile truce" into an open "confrontation."

This incident cannot be simply viewed as a mere adjustment of tariff rates; rather, it is a geopolitical pressure campaign disguised as trade policy, aimed at forcing industrial reshoring.

A key line in Trump’s statement reads: "If these cars are produced in the U.S., there will be no tariffs."

While the stated reason is "the EU failed to honor the agreement," the underlying intent is crystal clear — pressuring European automakers (such as Volkswagen, BMW, and Mercedes-Benz) to relocate their production lines from Europe to the United States.

This is a precise strike: Germany’s automotive industry is the backbone of the EU economy and a major source of its trade surplus with the U.S. By abruptly increasing tariffs from 15% to 25%, Trump is effectively telling European automakers: either move your factories to the U.S. to provide jobs for American workers, or lose access to the U.S. market.

The EU’s response this time is no longer merely protestative — it has now unveiled tangible countermeasures.

The phrase “retaining all options” mentioned by the European Commission spokesperson conceals a pre-prepared list of retaliatory tariffs worth €95 billion.

This list covers politically sensitive products from the United States, including civilian aircraft, agricultural goods (soybeans, corn), and bourbon whiskey. This means that if a trade war erupts, America’s Midwestern agricultural heartland and giants like Boeing will face severe damage.

Trump is gambling on the U.S.-EU alliance, attempting to fulfill his "America First" promise through extreme pressure. Meanwhile, the EU has shown unprecedented unity and firmness this time, ready to defend its interests with "reciprocal retaliation."

The key developments to watch next are: whether the EU will officially launch its retaliation program around June 10 (the deadline for public consultation on the countermeasure list), and whether German automakers will be forced to announce large-scale factory expansion plans in the U.S. to avoid tariffs.

Original article: toutiao.com/article/1864116255415308/

Disclaimer: The views expressed in this article are solely those of the author.