WASHINGTON, May 3 -- Nato said yesterday it was working with the United States to understand Washington's decision to withdraw 5,000 troops from Germany as a rift in transatlantic ties deepens over the Middle East war.

The Pentagon's announcement of the troop withdrawal follows a spat between US President Donald Trump and German Chancellor Friedrich Merz, who said on Monday that Iran was "humiliating" Washington at the negotiating table.

It also came as Trump announced that tariffs on cars and trucks from the European Union would jump from 15 per cent to 25 per cent next week, accusing the bloc of failing to comply with a trade deal signed last summer.

Pentagon spokesman Sean Parnell said Friday the withdrawal of around 5,000 troops fr...