Donald Trump plans to raise tariffs on European cars and trucks to 25%, a 10-point increase, citing the EU's non-compliance with a prior trade agreement. This significant escalation in the trade dispute could cost Germany an estimated $18 billion. The automotive sector, a crucial part of Europe's economy, is expected to be heavily impacted by these new duties.

In addition to withdrawing troops from Germany, Donald Trump is escalating his trade dispute with the European Union. He says tariffs on cars and trucks will rise to 25 percent next week because the bloc is not complying. That is 10 percentage points higher than the rate agreed in a trade deal last July. The automotive sector is especially important to the EU, as car manufacturing makes up a significant part of Europe’s economy. Charlotte Lam reports.