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President Donald Trump has threatened to impose a 25 per cent tariff on imports from the European Union, accusing the bloc of being designed to harm the United States.
These comments were made during Trump’s first cabinet meeting of his second term, where he was joined by billionaire Elon Musk, who has been tasked with reducing government spending.
Trump stated, “We have made a decision and we’ll be announcing it very soon. It’ll be 25 per cent generally speaking, and that will be on cars and all other things.”
This move by Trump could potentially lead to a trade war between the US and Europe, impacting both economies and straining diplomatic relations.
In addition to the EU, Trump is also planning to implement 25 per cent tariffs on imports from Canada and Mexico to address issues of undocumented immigration and fentanyl trafficking.
Despite previous threats of tariffs on these countries, only measures against China have been put into effect during Trump’s presidency.
During the cabinet meeting, Commerce Secretary Howard Lutnick indicated that the tariffs on Canada and Mexico may still take effect despite a possible delay, as they need to meet Trump’s demands.
Trump’s criticism of the EU comes shortly after meeting with French President Emmanuel Macron and ahead of a meeting with UK Prime Minister Keir Starmer.
While Trump did not provide specifics on the proposed EU tariffs, he reiterated his belief that the EU has taken advantage of the US economically.
Following Trump’s comments, the euro dipped slightly against the dollar, and auto groups expressed concerns about the potential impact of tariffs on imported cars.
Elon Musk, during the meeting, defended his efforts to reduce government spending, emphasizing the importance of fiscal responsibility.