Pres. Trump on a Truth Social post says he will increase tariffs on European cars and trucks next week to 25% citing that they are not fully agreeing to the trade deal.
Stocks have come off a bit on the news but they still remain in positive territory. The US dollar has also moved modestly to the upside but remains lower on the day.
Recall that the Supreme Court of the United States ruled that the initial tranche of tariffs was unconstitutional, setting the stage for an estimated $160 billion in refunds to importers. The administration has pointed to an alleged breach of a trade agreement as justification for its broader tariff stance, even as companies continue to move forward with building production capacity in the United States. Still, patience appears to be wearing thin, with geopolitical strains tied to the Iran conflict and what is viewed as limited support from NATO allies adding to the pressure around trade policy and enforcement.
There was good news on the tarriff front after the recent visit by the King of England.
Trump announced that the U.S. will remove tariffs on Scottish (Scotch) whisky, reversing the roughly 10% duty that had been imposed in 2025 on certain UK goods. The move is being viewed largely as a diplomatic gesture toward the United Kingdom and more specifically the King. While the policy shift has been confirmed, the rollout is still in its early stages, meaning the actual removal and pricing impact may take some time to fully filter through.
King Charles gave the President a bell and gave the Pres. a few days of what the royal treatment feels like.
