Daijiworld Media Network- Washington

Washington, Feb 27: US President Donald Trump has declared that his administration will impose 25 per cent tariffs on European Union (EU) products, including automobiles, claiming that the 27-member bloc was established with the intention of disadvantaging the United States.

"We have made a decision. We'll be announcing it very soon, and it'll be 25 per cent generally speaking, and that'll be on cars and all other things," Trump stated during a White House Cabinet meeting on Wednesday.

The EU is one of the US's three largest trading partners, alongside China. Trump also confirmed that his administration would impose 25 per cent tariffs on Canada and Mexico, the nation's two largest trading partners, starting next week.

Trump accused the EU of taking undue advantage of the United States, citing trade imbalances and alleged restrictions on American products.

"They don't accept our cars, they don't accept, essentially, our farm products. They use all sorts of reasons why not. And we accept everything of them, and we have about a $300 billion deficit with the European Union," he asserted.

However, a report by Politico previously suggested that Trump’s stated trade deficit figures were overstated.

According to EU data, the US goods trade deficit with the bloc in 2023 stood at 155.8 billion euros. However, the US maintained a 104 billion euro surplus in services, bringing the overall trade balance to approximately 51.8 billion euros ($56 billion).

When asked about delaying tariffs on Mexico and Canada due to progress on border control, Trump dismissed any possibility of further postponements.

"I'm not stopping the tariffs. No," he affirmed, citing concerns over fentanyl smuggling and claiming it had resulted in "millions of deaths."

US Secretary of Commerce Howard Lutnick highlighted key deadlines regarding the tariff implementation. The tariffs on Canada and Mexico, initially delayed for one month, are set to take effect on March 4. The two countries must demonstrate to the President before the deadline that they have taken sufficient measures to curb fentanyl entry.

"It will be hard to satisfy," Trump remarked, implying that the required measures were unlikely to meet his expectations.

Lutnick also noted that April 2 has been set as the date for broader tariff actions against additional countries.

On February 1, Trump signed an executive order imposing a 25 per cent tariff on goods imported from Mexico and Canada, with an additional 10 per cent tariff on Canadian energy products.
Subsequently, on February 3, Trump announced a one-month deferral of these tariffs to allow room for negotiations.

However, in his latest statement on Monday, Trump reaffirmed his stance, stating that the tariffs on Mexico and Canada would "go forward."

The announcement has drawn mixed reactions from US trade partners, with economists warning of potential retaliatory measures from the EU and affected nations.