United States President, Donald Trump has threatened to impose 25% tariffs on the European Union, arguing that the bloc was created to “screw” the U.S.
During his first Cabinet meeting of his second term on Wednesday, Trump announced that tariffs on Canada and Mexico would take effect on April 2, along with 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 prioritized addressing what he views as unfair trade relationships with key U.S. neighbours and trading partners, pointing to persistent trade deficits—where imports exceed exports—as proof of the issue.
Trump asserted, without providing evidence, that the EU was created to weaken 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 officially established in 1993 with the enforcement of the Maastricht Treaty, building on post-war efforts to promote European unity. Its goals include creating an internal market and fostering sustainable development.
European Commission data show that in 2023, the EU had a €155.8 billion ($159.6 billion) trade surplus with the U.S. for goods but ran a €104 billion deficit in services. The largest EU exports to the U.S. by product group were machinery and vehicles, followed by chemicals, other manufactured goods, and pharmaceutical products.
European markets are set for a sharp decline as Trump’s tariff threats unsettle the EU, which has previously warned it would respond “in a proportionate way.”
The European Commission, the EU’s executive arm, responded to Trump’s remarks by vowing 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.”
In response to Trump’s claims about the EU’s origin, the European Commission stated that the EU has benefited the U.S.
“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 in a statement.
The EU called on the U.S. to collaborate in “preserving these opportunities for our people and businesses, not working against each other.”
