US President Donald Trump announced plans to impose 25% tariffs on goods made in the European Union, with implementation set for April 2. This move follows the President's ongoing efforts to address trade imbalances and protect American manufacturing. Trump's administration has already imposed a 10% tariff on Chinese imports since he took office and has initiated tariffs on other imports.
"We'll be announcing it very soon," – US President Donald Trump
The decision to impose tariffs on the EU comes amid Trump's broader strategy to leverage tariffs as a means of boosting US manufacturing and negotiating changes in foreign policies he opposes. The US Commerce Department is expected to deliver recommendations for "reciprocal" tariffs on the same day these new tariffs are set to take effect. Trump emphasized the general application of the tariffs, stating, "It'll be 25% generally speaking and that will be on cars and all other things."
In response, the European Union rejected Trump's claims, asserting that the creation of a regional market has facilitated business for American firms in Europe. A spokesperson for the commission indicated that the EU would respond "firmly and immediately against unjustified tariffs." The White House, however, did not offer any immediate clarification on the tariff announcement.
Trump's stance on trade has been consistent with his previous actions, as evidenced by his earlier decision to impose 25% tariffs on goods from Mexico and Canada. Initially scheduled to begin on March 4, these tariffs were deferred to April 2 due to separate concerns about drug trafficking and migration from those countries. Commerce Secretary Howard Lutnick confirmed that "the overall is April 2," distinguishing between various trade and security issues.
"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," – US President Donald Trump
The impending tariffs have already affected financial markets. As of mid-day trading, major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq were trending lower. This reflects investor concerns over potential retaliatory measures and broader implications for global trade.
President Trump has tasked his staff with developing tailored recommendations for "reciprocal" tariffs on each country, continuing his criticism of European policies that he believes disadvantage American food and car exporters.