US President Donald Trump has announced plans to impose 25% tariffs on goods from the European Union, stating that the bloc was established to "screw the United States." The tariffs, which will include cars and other goods, are expected to be announced soon. The European Union has vowed to respond "firmly and immediately" to what it considers unjustified tariffs.
In addition to the proposed EU tariffs, Trump has hinted at the possibility of delaying tariffs on imports from Mexico and Canada, initially set for implementation on March 4. However, an administration official confirmed that the deadline remains, with a review of Mexico and Canada's border security actions forthcoming.
Trump reiterated his stance on European trade policies, which he claims disadvantage American exporters of food products and cars. "The European Union was formed to screw the United States - that's the purpose of it and they've done a good job of it," he stated. The EU countered, arguing that the regional market's creation has facilitated American business operations in Europe. "It has been a boon for the United States," said a commission spokesperson, emphasizing readiness to cooperate under fair rules while protecting their consumers and businesses.
Tariffs, a tax on imports paid by importing companies, are a tool Trump intends to use to bolster US manufacturing, generate revenue, and influence foreign policy changes. However, concerns persist about potential inflation and increased consumer prices as businesses may pass tariff costs onto customers.
Since assuming office, Trump has implemented 10% tariffs on Chinese goods and explored other import duties, including "reciprocal" tariff development. Despite these actions, some plans have been suspended, leaving businesses uncertain about future trade policies.
Antonin Finkelnburg, representing German businesses, remarked that a 25% tariff on EU goods entering the US would pose a "difficult" but "not an impossible" challenge for Germany's economy. He noted that many German car manufacturers already produce in the US, mitigating direct tariff impacts, although prices may rise due to cross-border car part manufacturing.
Earlier this month, Trump ordered 25% tariffs on goods from Mexico and Canada, but postponed implementation to allow border security discussions. Trump expects these tariffs to take effect on April 2, coinciding with the Commerce Department's recommendations for "reciprocal" tariffs. Commerce Secretary Howard Lutnick distinguished between tariffs related to drug trafficking and migration concerns.
Source: BBC
