Trump said in a social media post that the EU “is not complying with our fully agreed to Trade Deal,” though he did not flesh out his objections in the post.

Asked by reporters on Friday about the increase in import taxes as he departed the White House for Florida, Trump said the EU was not “as usual” adhering to last year’s trade framework, without detailing the source of the tension. He added that he believed the shift to higher tariffs “forces them to move their factory production much faster” to the U.S.

Trump and European Commission President Ursula von der Leyen had agreed to the trade deal last July. It set a tariff ceiling of 15% on most goods, though the Supreme Court this year ruled against the legal authority that Trump had used to charge that tax. This left Trump looking for substitute authorities, and his administration has imposed a 10% tax while investigating trade imbalances and national security issues to put in new tariffs to make up for lost revenues.

The tariffs hit at a moment when the Iran war has crushed the world economy with expectations of slower growth and higher inflation, as oil and natural gas prices have risen due to the effective closure of the critical Strait of Hormuz after strikes by the U.S. and Israel began at the end of February.

At the same time, Trump faces political pressure in the U.S. going into November’s midterm elections because of rising levels of inflation. Trump, a Republican, returned to the White House last year on the explicit promise that he could quickly tame prices that jumped in the aftermath of the government’s response to the coronavirus pandemic, but higher energy costs pushed annual inflation in March to 3.3%, which was higher than what he had inherited.

Just 30% of U.S. adults approved of Trump’s handling of the economy, according to the latest poll by The Associated Press-NORC Center for Public Affairs.

Both the U.S. and the EU had previously confirmed their commitment to preserving the trade framework, known as the Turnberry Agreement, which was named after Trump’s golf course in Scotland.

The status of the 2025 deal was first cast into doubt after the Supreme Court this year ruled that the president lacked the legal authority to declare an economic emergency and charge tariffs on goods from the members of the EU and other states. The alternative tariffs being explored by the Trump administration could ultimately put the agreement with the EU in risk of violation, though European Commissioner for Trade and Economic Security Maroš Šefčovič told reporters last week that the relationship with the U.S. had become more positive over the past year.

The EU had said it expected the bilateral deal would save European automakers about 500 million to 600 million euros ($585 million to $700 million) a month.

The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat.

“A deal is a deal,” the European Commission said in February after the Supreme Court ruling. “As the United States’ largest trading partner, the EU expects the U.S. to honor its commitments set out in the Joint Statement — just as the EU stands by its commitments. EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”

The post Trump says he’ll place 25% tariff on autos from the EU, accusing it of not complying with trade deal appeared first on The Hemet & San Jacinto Chronicle.

After three straight years of strong growth, sales have stabilized in California, raising questions about whether the state will fail to meet its groundbreaking mandate banning sales of gas-powered vehicles.

About a quarter — 25.3% — of all new cars registered in California in 2024 were zero emissions, just slightly more than 25% in 2023, according to new California Energy Commission data. The flat sales follow several years of rapid growth — in 2020, only one in 13 cars sold was zero-emissions. Their share of California’s market is now three times larger than four years ago.

But the slowed pace of growth in the market puts the state’s climate and air pollution goals at risk. Under California’s mandate, approved in 2022, 35% of new 2026 car models sold by automakers must be zero emissions. That leaves considerable ground to make up as some 2026 models begin rolling out later this year.

The requirement ramps up to 68% for 2030 models, and in 2035, California’s rule bans all sales of gasoline-powered cars.

David Simpson, who owns three car dealerships in Orange County, said he is not seeing increased demand for electric cars. While the initial rollout of some models, such as the GMC Hummer EV, did well at first, the demand did not continue. Sales of the Chevrolet Equinox and Blazer EVs do alright, but aren’t strong, either, he said.

“The sales are declining,” Simpson said. “We’ve filled that gap of people who want those cars — and now they have them — and we’re not seeing a big, huge demand. I don’t see households going 100% EV.”

Dave Clegern, a spokesperson for the California Air Resources Board, which oversees the electric car mandates, said in an email that while sales of zero-emission vehicles in California are “less dramatic than in years past,” the flat sales occurred in the context of an overall plateauing of car sales last year. 

Although the rules limit what automakers can sell, Californians are not required to buy electric cars. That means if consumer demand doesn’t increase, it could be a major black eye for Gov. Gavin Newsom, who has made electric cars a cornerstone of his agenda to fight climate change and clean the air. A spokesman for Newsom declined to comment. 

The state mandate, however, has some flexibility, Clegern said. First of all, it’s a multi-year formula: Each manufacturer’s sales of 2026 zero-emission vehicles must be 35% of its total sales averaged for model years 2022 through 2024. 

Manufacturers also can buy credits from automakers that have exceeded the target — companies that only sell electric models, such as Tesla or Rivian. To enforce compliance with California’s sales requirements, state officials could impose steep penalties of $20,000 per vehicle on manufacturers that fall short of quotas.

“Manufacturers may still be in compliance even if they do not achieve these specific sales volumes,” Clegern said.

Brian Maas, president of the California New Car Dealers Association, said  automakers could seek to avoid the fines by reducing the number of gas-powered cars they send to California dealers. He said that could leave fewer options for buyers, drive up prices and push some consumers to Nevada or Arizona to find the car they want, while others will hold on to their older, more polluting vehicles. 

“We’re just not going to make the mandate as presently drafted” so automakers will have to take action, Maas said. “The most rational is to constrain inventory.”

The auto industry group Alliance for Automotive Innovation has been raising these concerns since at least December, when it published a memo entitled, “It’s gonna take a miracle: California and states with EV sales requirements.” The group warns the mandate could depress auto sales in California — as well as in other states that adopt its rules. 

Last month, John Bozzella, the group’s chief executive, called California’s rules “by any measure not achievable” after President Donald Trump signed an executive order repealing federal rules promoting electric vehicles. 

“There’s a saying in the auto business: You can’t get ahead of the customer,” Bozzella said.

The outgoing Biden administration’s U.S. Environmental Protection Agency granted California a waiver in December that allows the state to enforce its requirements phasing out new gas-powered cars. Many experts believe the Trump administration is likely to challenge the waiver through the courts.

Experts also anticipate that Trump could eliminate the $7,500 federal tax credit for zero-emission vehicle purchases, which would increase the cost of buying some electric cars. Newsom vowed last year to continue offering the incentive through state funding, although that promise came before Los Angeles faced devastating wildfires and the state released its fragile budget earlier this year.

Californians have purchased more than 2 million electric cars, leading the nation. The number has doubled in about two years.

But electric vehicle sales, which make up the majority of zero emission cars, grew by only 1.1% in 2024, with 378,910 sold compared to 374,668 in 2023. Plug-in hybrids, once considered a potential alternative to a purely electric model, remained relatively stable. And sales of hydrogen-powered cars all but collapsed last year, with sales plummeting to a meager 600 in 2024 from 3,119 in 2023.

The slower growth comes amid overall market sluggishness, with all auto sales in California dipping slightly last year to 1,752,030.

Loren McDonald, chief analyst for the charging app Paren, said a major contributor is a shift in consumer demographics.

The state’s market has moved beyond early electric car adopters — affluent, environmentally motivated buyers willing to overlook challenges like limited charging infrastructure and higher costs — and into the mainstream.

He said these new buyers, often from middle-income households or who live in apartment buildings without easy access to charging, are far less forgiving when it comes to electric cars. Concerns about range, broken chargers and upfront costs are deal breakers.

Tesla’s market dominance has exacerbated the issue. Many left-leaning California consumers, who were once loyal to Tesla, appear to have distanced themselves because of CEO Elon Musk’s controversial public persona and alliance with Trump.

As Tesla sales have softened, dropping 11% in California last year, the decline has disproportionately affected overall EV registration data in California because of the company’s significant market share, McDonald said. 

Affordability remains a crucial hurdle, though McDonald sees signs of improvement. Automakers have ramped up production, leading to competitive pricing and aggressive lease deals—many under $400 per month.

But mainstream consumers are largely unaware that electric vehicles offer long-term savings in fuel and maintenance, McDonald said, adding that better education is needed to convince consumers to take the leap, especially as electric car prices increasingly approach parity with gas-powered vehicles.

McDonald remains optimistic about 2025. The market will benefit from new electric models priced under $50,000 and technological advancements, such as faster charging and vehicle-to-home power capabilities. 

The post California’s surge in EV sales has stalled — so what happens to its landmark mandate? appeared first on The Hemet & San Jacinto Chronicle.