Trump Announces 25% Tariff on EU Imports, Escalating Trade Tensions

U.S. President Donald Trump has announced plans to impose a 25 per cent tariff on imports from the European Union (EU), claiming the bloc was created to take advantage of the United States.

Speaking at a cabinet meeting on Wednesday, Trump confirmed that a decision had been made and would be officially announced “very soon.”

“It’ll be 25 percent, generally speaking,” Trump told reporters. “And that’ll be on cars and all other things.”

Trump: EU Created to ‘Screw’ the U.S.

Reiterating his frequent claim that the U.S. is treated unfairly in global trade, Trump accused the 27-member EU of blocking American cars and farm products, while benefiting from easier access to U.S. markets.

“Look, let’s be honest, the European Union was formed in order to screw the United States,” Trump said. “That’s the purpose of it, and they’ve done a good job of it. But now I’m president.”

Currently, the EU imposes a 10 percent tariff on U.S. vehicle imports, which is four times higher than the U.S. tariff on European passenger cars. However, the U.S. already applies a 25 percent tariff on imported pickup trucks.

EU Vows to Retaliate Against Tariffs

Trump’s comments drew an immediate response from the European Commission, which described the EU as a key economic partner for the U.S.

“The EU 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,” a spokesperson said in a statement.

“The EU will always protect European businesses, workers, and consumers from unjustified tariffs.”

European officials and analysts also pushed back on Trump’s remarks. Former French ambassador to the U.S., Gérard Araud, dismissed the president’s claim, stating on X (formerly Twitter), “Trump hates the EU. He doesn’t know exactly what it is, but he hates it.”

Meanwhile, former Swedish Prime Minister Carl Bildt said Trump had a “seriously distorted” view of the EU’s origins.

“It was actually set up to prevent war on the European continent,” Bildt wrote.

Trump’s latest trade move comes at a time of strained relations between Washington and Brussels, driven by his “America First” foreign policy.

Beyond trade disputes, European leaders have voiced concerns over U.S. commitment to NATO, particularly in light of Trump’s relationship with Russian President Vladimir Putin and criticism of Ukrainian President Volodymyr Zelenskyy.

Trump has pledged to end the war in Ukraine swiftly, sparking fears in Kyiv and Brussels that he may support a peace deal that favors Russia, possibly allowing Moscow to retain territory seized during its invasion.

On Monday, Germany’s likely next chancellor, Friedrich Merz, warned that his country must become less reliant on the U.S., citing a growing lack of American interest in Europe’s future.

“Americans, or at least this portion of the Americans, care very little about the fate of Europe,” Merz said.

He also questioned whether NATO would still exist in its current form by mid-year, suggesting that Europe may need to rapidly build an independent defense force.

In response to concerns about NATO’s future, U.S. Secretary of State Marco Rubio downplayed the risks but urged European nations to invest more in their own defense.

“My reaction is NATO is not in jeopardy. The only thing that puts NATO in jeopardy is the fact that we have NATO allies who barely have militaries or whose militaries are not very capable,” Rubio told Fox News.

“These are rich countries, especially in Western Europe. They have plenty of money. They should be investing that in their national security, and they’re not.”

With Trump’s tariff decision looming, tensions between the U.S. and the EU are set to escalate further, raising concerns about potential economic and geopolitical fallout.