US President Donald Trump said in a statement on Friday that if the European Union does not remove tariffs and trade barriers against the United States soon, his administration will place a 20 percent tariff on all cars coming from the EU.
On June 20, US media reported Germany's leading automakers had proposed scrapping the EU's 10 percent tax and 2.5 percent tariff on car imports from the US.
The report said that in return, Trump must agree to take his threat of tariffs against EU auto imports off the table.
Trade disagreements between the US and the EU have intensified since Washington imposed a 25 percent tariff on imported steel and a 10 percent tariff on aluminum imports.
Transatlantic relations hit their lowest point after Donald Trump blamed his partners and allies for taking advantage of the US in terms of trade following the recent G7 summit.
The US president had first mentioned the introduction of tariffs in March and has been contemplating their introduction ever since.