The European Commission rejected on Friday U.S. President Donald Trump’s accusation that the European Union is breaching their trade agreement, warning that it holds open the right to retaliate after the U.S. announced a sharp tariff increase on European cars and trucks to 25 percent.

A Commission spokesperson insisted that the EU is implementing its commitments under the Joint Declaration in accordance with standard legislative practice, keeping the U.S. Administration fully informed at all times.

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The official added that Brussels is seeking clarity on the U.S. commitments while preserving all our options to protect the EU’s interests should Washington adopt measures incompatible with the deal.

The clash erupted hours after Trump took to Truth Social to declare that the European Union is not living up to our fully negotiated trade agreement and therefore, he would raise tariffs. Trump clarified that the levy will not apply to vehicles assembled inside the United States.

The European body, while reaffirming its commitment to a predictable and mutually beneficial transatlantic relationship, signaled that the sudden tariff escalation could unravel the hard‑won truce.

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