Washington: US President Donald Trump has announced that his administration will impose a 25% tariff on imports from the European Union (EU), including automobiles. Speaking at a White House Cabinet meeting on Wednesday, Trump accused the 27-nation bloc of engaging in unfair trade practices against the US.
“We have made a decision. We’ll be announcing it very soon, and it’ll be 25% generally speaking, and that’ll be on cars and all other things,” Trump stated. He further claimed that the EU was “formed to screw the US”, alleging that the bloc restricts American exports while benefiting from easier access to the US market.
The EU is the third-largest trading partner of the US, and tensions over trade policies have been escalating under Trump’s leadership. He asserted that Europe does not accept American cars or farm products, which, according to him, contributes to a $300 billion trade deficit. However, reports suggest this figure is exaggerated. According to Politico, in 2023, the US goods trade deficit with the EU stood at 155.8 billion euros, while the US had a surplus of 104 billion euros in services, bringing the overall trade imbalance to approximately $56 billion.
Tariffs on Mexico and Canada to Proceed
Trump also reiterated plans to impose tariffs on Mexico and Canada, stating that he would not delay them further despite ongoing negotiations over border security. The tariffs were initially scheduled to take effect on March 4, following a one-month postponement.
“I’m not stopping the tariffs. No,” Trump said, emphasizing that Mexico and Canada needed to take stronger measures to control fentanyl trafficking, which he claimed had caused millions of deaths.
US Secretary of Commerce Howard Lutnick outlined two key deadlines for the tariffs. March 4 is the deadline for Mexico and Canada to prove they have taken effective steps to curb fentanyl smuggling. Additionally, on April 2, broader tariff measures will be implemented against other countries.
Earlier this month, Trump signed an executive order on February 1, enforcing a 25% tariff on Mexican and Canadian imports, with an extra 10% tariff on Canadian energy products. He later delayed these tariffs until March to allow for negotiations. However, he has now confirmed that the tariffs will proceed as planned.
With the April 2 deadline approaching, analysts expect further trade tensions as Trump continues his aggressive stance on tariffs and international trade policies.
