Trump announces 25 percent tariff increase on European Union automobiles

Donald Trump has threatened to put a 25 percent tax on cars imported from the European Union. EU leader Ursula von der Leyen responded quickly, saying Europe has the power to fight back. Trump claimed the EU had broken an earlier agreement between the two sides. Von der Leyen warned that prices for ordinary people would rise immediately if the tariffs go ahead. The two sides had previously discussed lowering car tariffs from 27.5 percent to 15 percent, but those talks have not produced a deal. The EU automotive industry sells large numbers of vehicles to the United States each year, so higher tariffs would cause serious damage to European carmakers.