The European Commission said it will impose additional tariffs of up to 25% on electric vehicles made in the United States, starting July 1, after negotiations with Washington failed to produce a last-minute deal in Brussels.

The move deepens the transatlantic trade dispute and could raise costs for U.S. automakers selling into the European market. It also signals that both sides remain far apart on key industrial and trade issues despite weeks of discussion.

Officials have not said whether the new duties could be reversed if talks resume, but the decision reflects growing frustration on the EU side over the lack of progress. The tariffs are expected to affect a sector already under pressure from competition, subsidy disputes, and shifting demand.

Trade tensions between the EU and the U.S. have intensified as both economies try to protect domestic industries while avoiding a broader confrontation. For now, the new measures are set to take effect on July 1 unless a breakthrough occurs before then.