Trump has 'made a decision' on 25% tariff on EU goods
US president Donald Trump has signaled that a 25% tariff on goods exported from the EU into the US will be announced "very soon".
Speaking prior to a meeting of his cabinet yesterday (Wednesday, February 26), Trump said on tariffs on EU goods: "We've made a decision, and we'll be announcing it very soon."
Trump said the figure would be 25%, and although he didn't go into specifics on what exports from the EU would be impacted, he seemed to indicate that the tariff would be on all goods, saying it will be on "cars and all other things".
The president claimed that the EU has "taken advantage" of the US.
"They don’t accept our cars. They don’t accept, essentially, our farm products.... And we accept everything of them," he said.
When asked what would happen if the EU retaliates with tariffs of its own, Trump said: "They can't. I mean, they can try, but they can't."
He added: "They can do it, and they can try, but the numbers can never equal...ours... We are the pot of gold. We're the one that everybody wants. And they can retaliate, but it cannot be a successful retaliation, because we just go cold turkey. We don't buy anymore. And if that happens, we win."
Responding to Trump's comments yesterday, a spokesperson for the European Commission said: "The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies.
"The EU will always protect European businesses, workers, and consumers from unjustified tariffs.
"Europe stands for dialogue, openness, and reciprocity. We're ready to partner if you play by the rules. But we will also protect our consumers and businesses at every turn. They expect no less from us," the spokesperson added.
Earlier this month, the government here signed off on proposals from Tánaiste and Minister for Foreign Affairs and Trade Simon Harris to establish a new trade policy group of stakeholders, in light of the threats of tariffs being placed on EU exports to the US.
The Consultative Group on International Trade Policy will be chaired by the Tánaiste himself and will facilitate engagement with key domestic stakeholders on "latest and emerging trade developments and opportunities".
It is understood that these trade developments and opportunities include the possibility of tariffs being put in place by Trump, who has frequently indicated his intention to use tariffs on imports to the US on a wide range of products from several markets around the world as part of his economic and geopolitical agenda.
Commenting on this new group, Minister Harris said: “Establishing this consultative forum is an early priority of mine as Tánaiste and Minister for Foreign Affairs and Trade.
"Protectionism, national security concerns, and geo-strategic considerations are increasingly shaping national policies on international trade, including in some of Ireland’s largest trade partners.
“The Irish economy is highly globalised and as a result is more sensitive to developments around the world. Maintaining Ireland’s status as an open, global economy is a priority for this government and engaging with business sector representatives will help to shape our policy responses,” he added.
