US President Donald Trump declared that his administration has opted to impose 25% tariffs on imports from the European Union. “We have made a decision and we’ll be announcing it very soon. It’ll be 25 per cent,” Trump stated during a cabinet meeting, adding that the tariffs would be applied generally. However, he singled out the automotive sector as one of the key targets, reflecting his broader criticism of the EU—accusing it of being “formed to screw the United States.”
The announcement prompted an immediate reaction in the currency markets, with the euro falling slightly to $1.049 against the dollar. Analysts suggest that these new tariffs could further strain transatlantic trade relations and potentially lead to retaliatory measures from European partners.
As the US prepares to enforce these tariffs, the automotive sector is likely to face significant challenges. The move comes amid ongoing geopolitical tensions and a broader US strategy aimed at protecting domestic industries from what Trump perceives as unfair trade practices by the EU. The impact on trade and investment flows will be closely watched by markets and policymakers on both sides of the Atlantic.
