US former President Donald Trump has vowed to slap a 25% tariff on the European Union, claiming that the 27-member bloc was formed to take advantage of the United States.
At his first cabinet meeting on Wednesday, Trump announced, "We have made a decision and will be announcing it very soon. It'll be 25%." He said the tariffs would be applied to automobiles and other areas, although he did not offer additional details.
The European Union quickly denounced the action, threatening to retaliate "firmly and immediately" against what it views as unreasonable trade barriers. The EU, the US's third-largest trade partner after China, threatened retaliatory action should the tariffs come into effect.
A European Commission spokesman said, "The EU will respond firmly and swiftly to unfair barriers to free and fair trade, including where tariffs are applied to challenge legal and non-discriminatory measures. The EU will always defend European companies, workers, and consumers against unfair tariffs."
Trump's Tariff Plans Extend to Canada and Mexico
Trump also confirmed intentions to impose 25% tariffs on Canada and Mexico next week, even though he has stalled multiple times before when it came to implementing such charges.
Standing his ground on his tough trade policy, Trump hinted that foreign cars, medicines, and chipmakers would be targeted within weeks.
European Leaders Respond
French President Emmanuel Macron, who met with Trump in Washington earlier this week, had stated confidently that he had persuaded him not to have a trade war with the EU.
"Come on, you cannot have a trade war with China and Europe at the same time. I hope I convinced him," Macron said to Fox News after meeting with him.
In the meantime, Polish Premier Donald Tusk asked EU leaders to stop "totally unnecessary and stupid tariff wars."
Bloomberg reports that Trump's tariffs would affect up to $29.3 billion (€28 billion) of EU exports. The European Commission once again stated that there is "no justification" for imposing such tariffs and vowed to respond with countermeasures to protect European companies and consumers.
Economic Concerns and Trump's Response
Numerous economists, as well as conservative media outlets such as The Wall Street Journal, have cautioned that Trump's tariff policy may hurt the US economy instead of stimulating it.
On Wednesday, Trump resorted to Truth Social, his social media site, to reject criticism from The Wall Street Journal, which had contended that tariffs on Canada and Mexico would be counterproductive.
The tariffs will force a tremendous volume of auto production to MICHIGAN, a State which I just easily one [sic] in the Presidential Election," Trump stated, incorrectly spelling "won" in his message.
As tensions increase, the EU is still ready to retaliate if the US goes ahead with its recent tariff threats.
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