Trump's Bold Tariff Strategy: Impacting EU Imports

U.S. President Donald Trump is set to announce a 25% tariff on imports from the European Union, focusing on cars. This move is in response to the EU's 10% passenger car tariff, significantly higher than the U.S. rate, and their value-added taxes, which U.S. officials find unfair.

In a significant move expected to stir international trade relations, U.S. President Donald Trump declared on Wednesday that his administration will institute a 25% tariff on imports from the European Union.

Announcing the decision to reporters during a cabinet meeting, Trump specified that the tariff will predominantly target automobiles, aiming to address what he perceives as an imbalance in trade policies.

The EU currently imposes a 10% tariff on passenger cars—four times the U.S. rate of 2.5%—and applies value-added taxes of no less than 17.5%, measures that have been ongoing points of contention for U.S. officials.

(With inputs from agencies.)