On the 26th (local time), U.S. President Donald Trump said that the European Union (EU), composed of 27 European countries, was created to "deceive the United States" and that he would soon announce a policy to impose a 25% tariff on European imports, including cars.
According to the British daily Guardian and others, Trump noted during the first cabinet meeting of his second administration held at the White House that when reporters asked about the 'tariff rate to be imposed on the EU,' he said, "We have made a decision and will announce it soon. It will be 25%." He added, "It will apply to cars and everything."
The EU is the third-largest trading partner of the United States, following Canada and Mexico. Trump plans to impose a 25% tariff on Canada and Mexico starting April 2. Currently, the U.S. imposes a 2.5% tariff on cars exported by the EU, while the EU imposes a 10% tariff on U.S. cars. The value-added tax rate of the EU, which Trump claimed is "almost a tariff," starts at 17.5%.
Trump said, "The EU is a different kind of case than Canada," adding, "Europe has taken advantage of the United States." He continued, "The EU has not accepted our cars and agricultural products. The trade deficit with the EU is $300 billion (in reality, according to last year's U.S. statistics, it is $235.6 billion)." He concluded, "Let's be honest. The EU was created to take advantage of the United States."
The EU reacted immediately, stating, "We will respond firmly and promptly to unjust trade barriers," indicating that it will quickly respond to the tariffs proposed by Trump.