Washington, Feb 27 (V7N) - President Donald Trump has announced his decision to impose a 25% tariff on imports from the European Union (EU), claiming that the EU was formed "to screw the United States."

During a Cabinet meeting on Wednesday, Trump revealed that the tariffs would apply to all imports but singled out car imports, emphasizing the EU's practices. He said, "They've really taken advantage of us. They don't accept our cars. They don't accept, essentially, our farm products. And we accept everything of them."

Trump further criticized the EU, stating, "Let's be honest. 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."

The EU was originally created after World War II to foster peaceful cooperation and economic integration between European nations. This integration led to the development of a shared currency, the Euro, and the ability to freely move across national borders.

When asked about possible retaliatory tariffs by the EU, Trump dismissed the concern, saying, “They can try, but they can’t.”

Trump has also delayed the imposition of a 25% tariff on imports from Canada and Mexico, with a new implementation date of April 2. Additionally, the president has already enacted a 10% tariff on Chinese imports. All three countries—Canada, Mexico, and China—have expressed intentions to retaliate with their own tariffs.

According to the U.S. Trade Representative, the U.S. goods trade deficit with the European Union reached $235.6 billion in 2024, marking a 13% increase over the previous year.

Economists have raised concerns about the economic impact of these tariffs. The Tax Foundation, a Washington, D.C.-based think tank, estimates that tariffs on Chinese imports could reduce the U.S. GDP by 0.1%, while the proposed tariffs on Canada and Mexico might cause a 0.3% reduction in long-term GDP. Experts warn that the tariffs could reignite inflation, which Trump has previously promised to address.

Gary Hufbauer, an economist at the Peterson Institute for International Economics, warned, “My view is it would mean a real shock to the American economy... Quite a bit of inflation.”

Republican Senator Mitch McConnell, in a February 15 op-ed in USA TODAY, criticized Trump's tariff policies, calling them “bad policy.” He warned that retaliatory tariffs from trade partners could trigger a broader trade war, affecting various U.S. industries, from agriculture to manufacturing.

The decision to impose tariffs on the EU marks another major shift in U.S. trade policy under Trump, as he continues to prioritize addressing trade imbalances.

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