US to Announce 25% Tariff on EU Imports, Trump Says

Ahsan Ali February 27, 2025

On February 26, 2025, U.S. President Donald Trump confirmed that his administration is set to announce a 25% tariff on imports from the European Union (EU). Speaking during his first cabinet meeting of the year, Trump stated that the decision had been made and would be revealed "very soon." The tariffs are expected to apply broadly, particularly to cars and other goods.

Reasons for the Tariffs

The announcement comes amid ongoing tensions over trade imbalances between the U.S. and the EU. One major point of contention is the EU’s 10% tariff on passenger cars, which is significantly higher than the 2.5% tariff imposed by the U.S. on European vehicles. U.S. officials have also voiced concerns about the European Union’s value-added tax (VAT), which stands at a minimum of 17.5%.

Trump’s comments reflect his administration’s continued focus on addressing what it sees as unfair trade practices and seeking a more balanced relationship with the EU. These new tariffs could mark another significant escalation in trade tensions between the U.S. and Europe, particularly in the automotive sector.

Global Trade Impact

The implementation of these tariffs could have widespread effects on international trade. European car manufacturers, such as Volkswagen, BMW, and Mercedes-Benz, could face increased costs when exporting vehicles to the U.S., potentially leading to higher prices for American consumers and disruptions in the global automotive market.

This move would also add to existing trade challenges between the U.S. and other global powers, including China and the EU, as the Trump administration pushes for more favorable trade terms.

This article was produced by Reuters news agency and has not been edited by Global South World.