In a bold move, US President Donald Trump has threatened to impose a hefty 25% tariff on the European Union, accusing the 27-nation bloc of being “formed to screw the United States.”
During a cabinet meeting on Wednesday, Trump revealed his plans, promising to announce the specifics of the new tariff measure soon.
The European Union swiftly responded, vowing to take “firm and immediate” action against what it deemed “unjustified” trade barriers, signaling the potential for a retaliatory strike. As the US’s third-largest trading partner, the EU’s response is likely to escalate tensions between the two economies.
Trump, who also plans to target Canada and Mexico with similar tariffs next week, hinted that the tariffs would largely affect carmakers and a range of other industries. “It’ll be 25%, and it’ll be on cars and all other things,” he stated, though further details remain unclear.
A European Commission spokesperson emphasized the EU’s commitment to defending European businesses, workers, and consumers from “unjustified tariffs,” vowing retaliation if the US proceeds with its tariff plans. The potential tariff impact on the EU’s exports could reach a staggering $29.3 billion, according to Bloomberg.
While French President Emmanuel Macron met with Trump earlier this week, trying to steer him away from a transatlantic trade war, Trump remained undeterred, insisting that tariffs on foreign cars, drugs, and semiconductor chips are coming soon.
Despite warnings from economists and conservative outlets like The Wall Street Journal, who argue that Trump’s tariffs could hurt the US economy, the president remains steadfast.
Taking to his social media platform, Truth Social, Trump dismissed concerns, claiming the tariffs would drive auto manufacturing to Michigan, a state he won easily in the 2020 election.
As tensions rise, both the US and EU stand on the brink of a potentially costly trade battle.
