Trump Threatens 25% Tariffs on EU Imports, Claims Bloc Was Formed to Harm US

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US President Donald Trump has threatened to impose 25% tariffs on imports from the European Union, claiming that the economic and political bloc was formed “to screw” the US. This move has sparked concerns of a trade war and higher prices for consumers. The president made this announcement during the first Cabinet meeting of his second term in office, where he also stated that duties against Canada and Mexico would take effect on April 2. Trump's trade measures will include a 25% tariff on goods from the EU, which he claims will be imposed on cars and all other things.

The president has made it a priority to tackle what he sees as unfair trade relationships with a number of the US' closest neighbors and trading partners, citing the US' persistent trade deficits as evidence of this. Trump claimed, without citing evidence, that the EU had been formed to undermine the US. He also stated that the EU does not accept US cars and farm products, while the US accepts everything from the EU, resulting in a significant trade deficit. The EU has responded to Trump's comments, stating that the bloc will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies.

The European Commission has noted that the EU has benefitted the US, creating a large and integrated single market that has facilitated trade, reduced costs for US exporters, and harmonized standards and regulations across 27 countries. The Commission has urged the US to work with the EU to preserve these opportunities for people and businesses, rather than working against each other. The tariffs prospect is not new, with Trump having already threatened the EU and UK with levies. The White House leader had previously signaled that a deal could be worked out with Britain, which has a more balanced trading relationship with the US. The trade relationship between the US and EU is complex, with the EU having a trade surplus of 155.8 billion euros with the US for goods in 2023, but running a 104-billion-euro deficit on services.

The imposition of tariffs on EU imports would likely translate into higher prices for US consumers, with economists already warning of the potentially inflationary impact of import duties. European markets are heading for a sharply lower open, and Trump's tariffs threat has rattled the EU, which has previously threatened to respond to the measures in a “proportionate way.” The EU has also rejected Trump's claims about the EU's origin, stating that the EU was established after the 1993 enforcement of the Maastricht Treaty, building on post-war sentiment of European unity and citing establishing an internal market and achieving sustainable development among its aims.

Here is a list of key points related to the trade relationship between the US and EU: * The EU has a trade surplus of 155.8 billion euros with the US for goods in 2023 * The EU runs a 104-billion-euro deficit on services * Machinery and vehicles make up the largest chunk of EU exports to the US by product group * The EU has previously threatened to respond to US tariffs in a “proportionate way” * The US has a significant trade deficit with the EU, which Trump claims is evidence of unfair trade relationships. The situation is being closely monitored, with many experts warning of the potential consequences of a trade war between the US and EU.