The S&P 500 (SPX) is trading higher on Friday, although the index has fallen from its morning highs after President Trump said he would increase the tariff rate on cars and trucks imported from the European Union to 25%.
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Forget margin or options. Here's how the pros trade QQQ“I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States,” Trump said in a Truth Social post.
EU Accuses U.S. of Violating Trade Deal
Stellantis (STLA), Volkswagen (VWAGY), and Mercedes-Benz (MBGYY) fell lower following the announcement. Trump added that EU automakers who produce cars and trucks in the U.S. will be exempt from tariffs.
European Parliament member Bernd Lange accused Trump of violating the U.S.-EU trade agreement, which involves a maximum tariff rate of 15% on most items imported from the bloc. “This latest move demonstrates just how unreliable the US side is,” he said.