U.S. to Impose 25% Tariffs on EU Imports, Targeting Cars

U.S. President Donald Trump announced a forthcoming 25% tariff on imports from the European Union. The tariff, as stated by Trump during a cabinet meeting, will primarily target automobiles. This decision follows complaints from U.S. officials regarding the EU's 10% tariff on passenger cars, which is four times higher than the U.S. rate of 2.5%. U.S. officials have also expressed concerns about European value-added taxes, which are at least 17.5%. Trump stated that the EU "was formed in order to screw the United States," citing a $300 billion deficit with the EU. He also mentioned that the EU doesn't accept U.S. cars or farm products, while the U.S. accepts everything from them. The U.S. Trade Representative data indicates a $200 billion trade deficit with the EU in 2022, although the U.S. has a $70 billion edge in service trade. The EU is the U.S.' third-largest trading partner.