Free Trade

Trump's New European Car Tariffs Demonstrate Why His 'Deals' Are Worthless

A trade deal that can be terminated by one person at any time and for any reason isn't really a trade deal at all.

Eric Boehm | 5.4.2026 2:50 PM

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(Illustration: Lex Villena; Midjourney)

When President Donald Trump struck a trade deal with the European Union in July, officials on both sides stressed how it would ensure long-term stability to trans-Atlantic trade.

The Trump administration called the deal a "generational modernization of the transatlantic alliance." European Commission President Ursula von der Leyen said it "restores stability and predictability" by locking in 15 percent tariffs on most European goods exported to the U.S., while most American imports to Europe would be exempt from tariffs.

In other words, Trump got what he wanted out of that deal: A reduction in tariffs on American exports and the establishment of a new, permanent baseline tariff on European goods. European leaders also felt like they'd won something: the 15 percent tariff was lower than the 25 percent tariff Trump had threatened, and the deal would stop Trump from hiking tariffs the next time he was........

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