US President Donald Trump has announced plans to impose 25% tariffs on goods imported from the European Union, accusing the bloc of being designed to “screw the United States.”
“We’ll be announcing it very soon,” Trump told reporters during a meeting with his cabinet. “It’ll be 25% generally speaking, and that will be on cars and all other things.”
The European Union responded swiftly, vowing to retaliate “firmly and immediately” if the tariffs are implemented.
Trump’s remarks come as his administration considers additional tariffs on goods from Mexico and Canada, set to take effect on March 4. Although the president hinted that these could be postponed again, a senior administration official later clarified that the deadline remains in place while Trump reviews actions on border security.
The president reiterated his long-standing criticism of European trade policies, claiming they disadvantage American exporters.
“The European Union was formed to screw the United States that’s the purpose of it, and they’ve done a good job of it,” Trump said. “But now I’m president.”
The European Commission rejected his claims, stating that the EU’s single market has benefited American businesses by simplifying trade across Europe.
“It has been a boon for the United States,” said an EU spokesperson. “We’re ready to partner if you play by the rules. But we will also protect our consumers and businesses at every turn. They expect no less from us.”
Tariffs are essentially a tax on imports, paid by companies importing foreign goods. If imposed, these new levies could drive up prices for US consumers, especially on popular European products like cars and food.
Trump argues that tariffs will boost US manufacturing and pressure other countries to adopt policies more favorable to American businesses. However, critics warn that increased costs could fuel inflation and disrupt supply chains.
Since taking office, Trump has imposed 10% tariffs on Chinese goods and has explored implementing similar measures on other trading partners. Despite these aggressive moves, some plans have been delayed, leaving businesses uncertain about future policy directions.
Tobin Marcus, head of US policy and politics at Wolfe Research, said Trump’s latest tariff threat aligns with his past rhetoric but raises concerns about the future of US-EU trade relations.
“It’s a number that’s concerning certainly should be concerning for the trans-Atlantic trade relationship, but not totally out of the blue,” Marcus said.
Germany, home to some of the world’s most recognized car brands, could face significant challenges if the US imposes the proposed tariffs.
Antonin Finkelnburg, a representative of Germany’s Federation of Wholesale, Foreign Trade, and Services, described the situation as “difficult but not impossible” for the country’s economy.
“We are worried but we shouldn’t be afraid, the German carmakers already produce vehicles in the US.
However, he warned that tariffs could increase prices due to the complex supply chain, where parts frequently cross the borders between Mexico, Canada, and the US.
Earlier this month, Trump ordered 25% tariffs on Mexican and Canadian goods but delayed their implementation until March 4 to allow further negotiations on border security.
Despite his earlier comments, Trump signaled on Wednesday that the tariffs could be enforced by April 2 the same day the US Commerce Department is expected to deliver broader recommendations for reciprocal tariffs.
Commerce Secretary Howard Lutnick confirmed that April 2 remains the target date for action on concerns related to drug trafficking and migration.
The uncertainty surrounding these trade measures weighed on financial markets. The Dow Jones Industrial Average, S&P 500, and Nasdaq all slipped in mid-day trading, while the Mexican peso and Canadian dollar gained in value.
As the April 2 deadline approaches, all eyes are on the White House for further announcements. If Trump follows through with his 25% tariff threat, it could escalate trade tensions with the EU, potentially sparking a retaliatory response and further disrupting global trade flows.
