India, May 2 -- Donald Trump has escalated trade tensions with the European Union after announcing a steep increase in tariffs on European cars and trucks to 25%, up from the 15% rate agreed under a deal struck last year.

According to Capital Brief, Trump made the announcement on Truth Social, accusing the EU of failing to honor the agreement. "Based on the fact the European Union is not complying with our fully agreed to Trade Deal. the Tariff will be increased to 25%," he wrote.

The new levies will not apply to vehicles manufactured in US facilities.

Speaking later at the White House, Trump said the move could push European automakers to relocate production to the United States more quickly.

The response from Brussels was swift. Ber...