U.S. President Donald Trump said on Wednesday that his administration is preparing to impose a 25% tariff on imports from the European Union, a move aimed at addressing longstanding trade disparities.
“We have made a decision, and we’ll be announcing it very soon, and it’ll be 25% generally speaking, and that’ll be on cars, and all of the things,” Trump told reporters during a cabinet meeting.
The proposed tariff would mark a significant escalation in U.S. trade policy toward the EU. Currently, the European Union levies a 10% tariff on passenger cars - four times the U.S. rate of 2.5% - and imposes value-added taxes of at least 17.5% on various goods. U.S. officials have frequently complained about these protectionist measures, arguing that they place American industries at a disadvantage.
The new measure is seen as part of Trump’s broader strategy to rebalance global trade, particularly in sectors where the U.S. perceives unfair practices by its trading partners. However, the announcement has raised concerns among European leaders, who warn that such tariffs could trigger retaliatory measures and further strain transatlantic economic relations.
At present, further details - including the scope of the tariff and its timeline—remain under wraps. The European Union has yet to issue an official response to Trump’s declaration.
As the U.S. moves forward with its aggressive trade agenda, markets and policymakers on both sides of the Atlantic are closely watching for potential ripple effects across global trade networks.
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