The US' imports from the EU could be subject to a 25pc tariff, possibly as early as 2 April, President Donald Trump said today.
"We have made a decision and we will be announcing it very soon," Trump told reporters invited to observe his first Cabinet meeting at the White House. "It will be 25pc generally speaking, and that will be on cars and all the other things."
Trump upon taking office ordered US government agencies to examine the causes of US trade deficits and to propose tariffs and other measures to reduce them — the first step in a process guaranteed to result in tariffs on key US trading partners. Trump set 1 April as the deadline for that report, but he now says he would avoid connotations with April Fools' Day and set the tariff process in motion on 2 April.
Even without additional actions, the US and the EU are set on a course for trade confrontation. Trump ordered a 25pc tariff on all imported steel and aluminum to go into effect on 12 March. Trump on 21 February also ordered his administration to come up with retaliatory taxes and tariffs in response to taxes assessed by the EU and other foreign jurisdictions on American social media and technology providers.
Trump previously mentioned the likelihood of 25pc taxes on imports of automobiles and pharmaceuticals from the EU. The scope of products covered by new tariffs is not yet clear.
"We have about a $300bn deficit with the EU," Trump said. "The EU was formed in order to screw the US. That's the purpose of it, and they've done a good job of it."
The US ran a $236bn deficit in trade in goods with the EU last year, US customs data show.
The EU will retaliate against US products if Trump proceeds with his tariff plans, European Commission president Ursula von der Leyen said earlier this month.
"Unjustified tariffs on the EU will not go unanswered," she said. "We will use our tools to safeguard our economic security and interests, and we will protect our workers, our businesses and consumers at every turn."
Trump today downplayed the possible retaliation by Brussels.
"They can retaliate, but it cannot be a successful retaliation," he said. "We are the pot of gold that everybody wants."
Trump separately suggested that 2 April is also the new implementation day for his broad tariffs on imports from Canada and Mexico. But commerce secretary Howard Lutnick corrected him, and said that the current plan to impose tariffs on Canada and Mexico will go on into effect on 4 March.
