Trump: "Next Target is the EU"... Deepening US-EU Conflict Over Tariffs

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The United States has launched a major declaration of war against the European Union (EU). After the Phase One trade agreement with China, the trade war front has expanded to Europe.

Earlier, President Trump applied significant pressure on the EU by imposing tariffs on European cars at the World Economic Forum Annual Meeting (WEF, Davos Forum) held in Davos, Switzerland, from the 21st to the 22nd.

President Trump met with Ursula von der Leyen, President of the European Commission, and said, "If we don't get something, we will have to take action," adding, "That action will be high tariffs on cars and other goods imported into the United States." He also said, "The EU has no choice."

In an interview with Fox News, President Trump said, "Car tariffs could reach 25%."

The tariff friction between the United States and the EU has been ongoing since President Trump's inauguration. In 2018, the U.S. imposed tariffs of 25% and 10% on foreign steel and aluminum products, including those from the EU, citing national security. In response, the EU retaliated by imposing tariffs on U.S. oranges, jeans, and other products.

In Europe, since March 2018, the imposition of digital taxes on major U.S. IT companies such as Google, Amazon, and Facebook has been considered as one of the retaliation tariff items. In July of this year, France unilaterally passed a digital tax bill.

Although President Trump and French President Emmanuel Macron agreed on the 19th to postpone the imposition of digital taxes and retaliatory tariffs for one year and to negotiate, the conflict remains a potential flashpoint at any time.

Additionally, in October last year, the U.S. won a World Trade Organization (WTO) lawsuit against the EU regarding Airbus subsidies, leading to retaliatory tariffs such as a 25% tariff on European wine, escalating tit-for-tat measures.

In the UK, digital taxes are expected to be imposed starting in April, which is likely to cause conflicts with the U.S. as well.

Trade negotiations between the U.S. and the EU are scheduled for February in Washington, where the future direction is expected to be determined.

President von der Leyen said, "We are working towards a broad and new agreement," adding, "It is not a good idea to engage in trade disputes for months."

This content was produced with the assistance of AI translation services.