Trump unleashes tariff war with EU and announces a +25 percent tariff on imports

Business

Donald Trump Credits: Official White House Photo, por Molly Riley.

Continuing with the new direction of United States policy that the new Administration of President Donald J. Trump is beginning to set on all fronts, this Wednesday, February 26, Washington DC time, the American president himself took it upon himself to advance the decision that his new Government has already adopted in relation to its commercial ties with the European Union. A single market towards whose member states he has already warned of the imposition of a +25 percent tariff charge on all those products that any of the 27 try to import into the United States.

During a meeting with the press and various journalists prior to the first meeting of the new US Cabinet, the main advisory body of any US president, it was Trump himself who was in charge, along with some of his main advisors, of both going into detail about some of the first measures already announced by his Administration, as well as announcing new ones. Among them, the next imposition, according to the US chief executive, of a +25 percent tariff on all products from the European Union that enter the United States. A measure that, Trump himself added, will be officially announced “very soon.”

The meeting with journalists began with a message of welcome and thanks for their attendance from President Trump, who then went on to address, first of all, the issue that is marking these first months of his new term in office at the head of the country: the peace negotiations to end the war between Russia and Ukraine. A matter on which he assured that the talks are “going very well”, while confirming the visit of President Zelensky to Washington DC this Friday, expected to finish formalizing the agreement by which Ukraine would guarantee, through the sale of part of its rare earths and other issues included in that same document, the payment of some 350 billion dollars to the United States, in compensation for the aid provided by the country during the conflict. A firm commitment that, Trump claimed, corrected the “very bad situation” in which he argues the previous administration of President Biden left the country, but which he minimized, emphasizing how “the most important thing, by far, is that we are going to reach an agreement with Russia and Ukraine so that they stop killing people.”

Tariffs for Mexico and Canada, for April 2

Turning now to the new tariffs that the new Trump Administration is imposing on countries and regions that, until now, had remained the United States' main trading partners, first of all, and in response to the question of whether a new moratorium on the 25 percent tariffs on Mexico and Canada would be approved in view of the greater control they have begun to exercise over their borders, Trump was blunt with a resounding "no." He completed his answer by confirming that, although not all, a large majority of the 25 percent tariffs on products from both Mexico and Canada will come into effect as of April 2.

“No, I’m not going to stop the tariffs,” because “millions of people have died from fentanyl coming across the border,” and although border crossings have been reduced, evidencing greater control between the United States borders with both Mexico and Canada, that has been “largely due to us,” Trump said. “Right now it’s very difficult to get across the border,” but “the damage has already been done,” and “we’ve lost millions of people to fentanyl,” a drug that, he says, “comes primarily from China, but comes through Mexico and Canada.” “We lost, from my estimates, in the last two years, on average, maybe close to 300,000 people who have died, and families are ruined.” “I’ve met many people who have lost children to fentanyl,” “dynamic, happy people … who die a miserable death,” and “that’s because of the garbage that comes through China and Mexico and Canada”; “largely” from Canada, a country that “we support,” Trump added, “with $200 billion a year in subsidies in one way or another.” Based on that estimate, “without us, Canada cannot survive,” given that the country “depends on us for 95 percent,” while “we depend on them for 4 percent.” And there “is a big difference,” and that is why “I say that Canada should be our 51st state,” because “there are no tariffs, nothing at all.” This will change starting next April 2, when “tariffs will make it impossible for them to sell wood or anything else to the United States.” A measure from which “all I ask is that it not be a loss-making relationship, or that very little is lost, but not $200 million.”

New tariffs on the European Union of +25 percent

After discussing tariffs on Mexico, Canada and China, the president was also asked about the possible imposition of tariffs on the European Union and its 27 member states. Trump confirmed this new trade policy, saying in response to a question about whether a decision had been made on the level of tariffs that the new administration intends to impose on the European Union that it will also be 25 percent on all products imported into the United States.

“We have made a decision and we will announce it very soon,” officially, but “it will be 25 percent, in general terms, and it will apply to cars and everything else,” Trump said. “The European Union is a different case than Canada,” because “they have really taken advantage of us in a different way.” And, in the words of the President of the United States, while Canada has remained one of the main manufacturing countries of cars that were subsequently imported to the United States, in the EU “they do not accept our cars,” nor “our agricultural products,” citing for this “all kinds of reasons for not doing so.” However, “we accept everything they offer us,” to the point that “we have a deficit of about 300 billion dollars with the European Union.” And although “I love the countries of Europe”; “All countries, frankly,” while acknowledging that “they are all very different,” Trump noted, “the European Union was created to annoy the United States,” “that is their purpose, and they have succeeded.”

“We are the pot of gold”

In response to the answer given by the American president, he was asked what the country and his Administration will do if, in light of the new tariffs, either Mexico and Canada, or the European Union, decide to retaliate in their trade relations with the United States, in the same way that China has already done after the imposition of tariffs, of +10 to +15 percent, on certain American products since February 10, in response to the first tariffs of +10 percent imposed by the Trump Administration. A supposition that the American president dismisses and relativizes, dismissing and denying any show of force that Mexico, Canada or the EU might be willing to try to exert in commercial matters.

“They can’t” retaliate, “I mean, they can try, but they can’t.” “They can try, but their numbers will never match ours” and “we can react.” “We are the pot of gold,” the “one that everyone wants,” the American president maintained. So “they can retaliate, but it can’t be a retaliation that will succeed,” because, if it were, “we would simply cut off” trade relations “at once.” “We would stop buying,” and “if that happens, we will win.”

An insight into Spanish market

The ongoing trade tensions between the EU and the United States, including a potential 25% tariff on EU imports, could significantly affect Spanish fashion and footwear industries, which rely heavily on the U.S. market. The U.S. has become an increasingly important market for Spanish companies like Inditex, Pronovias, and Mango, especially since the Russia-Ukraine war.

Despite being a key market, Spanish exports of footwear, textiles, and leather products to the U.S. have declined by 8.75% over the past 24 years, from 567.81 million euros in 2000 to 518.1 million euros in 2024. The peak was in 2022, with exports reaching 947.02 million euros. Imports from the U.S. have also fallen by 38%, from 153.54 million euros in 2000 to 95.07 million euros in 2024.

While these figures are notable, they are small compared to the size of the U.S. fashion and footwear markets, which were worth over 583.5 billion dollars in 2023. If tariffs are imposed, Spanish companies may face challenges, as their products could become more expensive for U.S. consumers.

This article originally appeared on FashionUnited.ES, translated and edited to English.

It was translated using AI. .

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