• President Donald Trump announces sweeping 25% tariffs on all EU imports, claiming the bloc was designed to weaken America.

• European leaders vow retaliation, warning of “firm and proportionate countermeasures” that could spark a full-blown trade war.

• Trump’s aggressive trade policies aim to rebalance global trade, but critics warn of higher prices and economic blow back for American consumers.

In a bold and unapologetic move, President Donald Trump has declared a new front in his ongoing trade war, announcing a blanket 25% tariff on all imports from the European Union. Speaking at his first Cabinet meeting of his second term, Trump accused the EU of being a deliberate economic adversary, claiming the bloc was “formed in order to screw the United States.”

“Look, let’s be honest, the European Union was formed in order to screw the United States, that’s the purpose of it,” Trump said. “And they’ve done a good job of it. But now I’m president.”

The announcement marks a dramatic escalation in the long-standing trade dispute between the U.S. and the EU, which has simmered since Trump’s first term. The president’s latest move targets not only steel and aluminum but also automobiles and a wide range of consumer goods, signaling a no-holds-barred approach to re-balancing what he describes as a lopsided trade relationship.

A history of trade tensions

The roots of this conflict stretch back to 2018, when Trump first imposed tariffs of 25% on European steel and 10% on aluminum, citing national security concerns. The EU responded with retaliatory tariffs on iconic American products like bourbon, motorcycles, and blue jeans, creating a tit-for-tat trade war that cost both sides billions.

In 2021, the Biden administration reached a temporary truce with the EU, pausing tariffs as part of the Global Arrangement on Sustainable Steel and Aluminum. However, Trump’s return to the White House has reignited the feud, with the president vowing to take even more aggressive action.

“It will be 25%, generally speaking, and that will be on cars and all other things,” Trump said, adding that the EU is “a different case than Canada… they’ve really taken advantage of us in a different way.”

EU vows retaliation

European leaders were quick to condemn Trump’s latest move, warning of severe consequences for both sides. European Commission President Ursula von der Leyen expressed “deep regret” over the decision, calling the tariffs “unjustified” and vowing to protect European workers and businesses.

“Unjustified tariffs on the EU will not go unanswered – they will trigger firm and proportionate countermeasures,” von der Leyen said. “The EU will act to safeguard its economic interests. We will protect our workers, businesses, and consumers.”

German Chancellor Olaf Scholz echoed these sentiments, warning that “trade wars hurt both sides’ prosperity.” Meanwhile, French Foreign Minister Jean-Noel Barrot hinted at a familiar playbook, referencing the EU’s previous retaliatory measures against American goods.

While Trump’s tariffs are framed as a means to strengthen America’s economic standing, critics warn that the move could backfire, leading to higher prices for American consumers and strained relations with key allies. The EU is one of the largest trading partners of the U.S., with bilateral trade in goods and services totaling over $1.3 trillion in 2022.

Trump’s supporters, however, argue that the tariffs are a necessary step to address decades of trade imbalances. By leveraging America’s economic power, the administration hopes to force European nations to the negotiating table, ultimately securing more favorable terms for U.S. businesses and workers.

Trump’s tariff war is more than just a trade dispute; it’s a high-stakes gamble with far-reaching implications. If successful, the tariffs could generate significant revenue, potentially funding a new external revenue service and even paving the way for the dissolution of the Internal Revenue Service. That arrangement could usher in an economic gold rush for Americans, but blow back from Europe will always be a concern.

Sources include:

RT.com

RT.com

Enoch, Brighteon.ai