US Set to Impose 25% Tariff on EU Imports, Sparking Fears of Trade War
Washington: The United States is reportedly preparing to impose a 25% tariff on imports from the European Union, raising concerns of escalating tensions between the two economic powerhouses. Media reports suggest that an official announcement will be made soon, with US President Donald Trump confirming that the decision has already been finalised.
Speaking at his first cabinet meeting on Wednesday, Trump launched a scathing attack on the EU, accusing the bloc of exploiting trade relations with the US.
“EU Designed to Destroy America”
Trump accused the European Union of creating unfair trade barriers that disadvantage American businesses.
“They don’t accept US cars. They don’t accept agricultural products, and they always find excuses for it. The European Union was formed to destroy America—and they are doing a very good job,” Trump said.
While the president did not specify the list of affected goods, reports indicate that the tariff will cover cars and other major products.
Tariff Plans on Canada and Mexico
In addition to the EU tariffs, the US administration has also decided to impose 25% import duties on goods from Canada and Mexico. The move is part of a broader strategy to curb illegal immigration and combat fentanyl trafficking. Trump announced that these tariffs would come into effect on April 2.
Existing Trade Disparities
The EU currently imposes a 10% tariff on passenger cars imported from the US, compared to the 2.5% tariff levied by the US on EU vehicles. American officials have also raised concerns over the 17.5% value-added tax (VAT) applied to many US goods exported to Europe.
These new tariffs are expected to strain diplomatic relations between Western allies, potentially sparking a transatlantic trade war that could harm both economies.
Norway Issues Trade Conflict Warning
Norwegian Prime Minister Jonas Gahr Støre has warned that the proposed tariffs could trigger a serious trade conflict. Although Norway is not a member of the European Union, it maintains close trade ties with the bloc and would be indirectly affected by the measures.
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