US President Donald Trump holds a cabinet meeting at the White House in Washington, DC, on February 26, 2025.
Jim Watson | Afp | Getty Images
U.S. President Donald Trump threatened to impose 25% tariffs on imports from the European Union, claiming that the economic and political bloc was formed “to screw” the U.S.
On Wednesday, during the first Cabinet meeting of his second term in office, Trump said that duties against Canada and Mexico would take effect on April 2 and that his trade measures will include a 25% tariff on goods from the EU.
“We’ll be announcing it very soon,” he told reporters. “It’ll be [a] 25% [tariff] generally speaking, and that will be on cars and all other things.”
He added, “They’ve really taken advantage of us … They don’t accept our cars, they don’t accept, essentially, our farm products. They use all sorts of reasons why not. And we accept everything of them.”
The president has made it a priority to tackle what he sees as unfair trade relationships with a number of the U.S.’ closest neighbors and trading partners, citing the U.S.’ persistent trade deficits — in which it imports more goods and services than it exports — as evidence of this.
Trump claimed, without citing evidence, that the EU had been formed to undermine the U.S.
“I love the countries of Europe. I guess I’m from there at some point, a long time ago, right? … But [the] European Union was formed in order to screw the United States … that’s the purpose of it, and they’ve done a good job of it. But now I’m president,” he said.
The EU was established after the 1993 enforcement of the Maastricht Treaty, building on post-war sentiment of European unity and cites establishing an internal market and achieving sustainable development among its aims.
European Commission data show that the EU had a trade surplus of 155.8 billion euros ($159.6 billion) with the U.S. for goods in 2023, but ran a 104-billion-euros deficit on services. Machinery and vehicles make up the largest chunk of EU exports to the U.S. by product group, followed by chemicals, other manufactured goods and medicinal and pharmaceutical products.
Tariffs on EU imports would likely translate into higher prices for U.S. consumers, with economists already warning of the potentially inflationary impact of import duties.
Europe rattled again
European markets are heading for a sharply lower open and Trump’s tariffs threat have rattled the EU, which has previously threatened to respond to the measures in a “proportionate way.”
The European Commission, the EU’s executive arm, responded to Trump’s comments by pledging to “react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies.”
Reacting to Trump’s claims about the EU’s origin, the Commission noted that the EU had benefitted the U.S.
Chad Ehlers | Getty Images
“The European Union is the world’s largest free market. And it has been a boon for the United States. By creating a large and integrated single market, the EU has facilitated trade, reduced costs for U.S. exporters, and harmonized standards and regulations across 27 countries. As a result, U.S. investments in Europe are highly profitable,” the Commission said.
The EU urged the U.S. to work with it “to preserve these opportunities for our people and businesses. Not against each other.”
The tariffs prospect is not new, with Trump having already threatened the EU and U.K. with levies. The White House leader had nevertheless previously signaled that a deal could be worked out with Britain, which has a much more balanced trading relationship with the U.S.
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