President Donald Trump suggested that the European Union (EU) could be next to prices, after having slapped 25% of levies from Mexico and Canada goods as well as an additional 10% tax on imports from China.
Arriving in Maryland from Florida, Trump told the BBC that the prices on EU goods imported to the United States could occur “very soon”.
“They do not take our cars, they do not take our agricultural products, they take almost nothing and we take everything. Millions of cars, huge quantities of food and agricultural products,” he said to journalists.
The American president added that he enjoyed good relations with British Prime Minister Sir Keir Starmer, and that trade problems with the United Kingdom could be resolved.
When asked by the BBC if there was a calendar to announce prices on the EU, Trump said: “I would not say that there is a chronology, but it will be very soon.”
For its part, the block of 27 members condemned Trump’s decision to move forward with prices against Canada, Mexico and China, and warned that it would “answer” if it also becomes a target.
Mexico and Canada have promised to take reprisal measures, while China said it could take “corresponding countermeasures”.
On trade with the United Kingdom, the American president said that the country was “out of line” but added that problems could be resolved.
“The United Kingdom is offline. But I’m sure that one, I think that one can be developed,” said Trump.
The American president also discussed his relationship with the British Prime Minister who, according to him, was “very nice”.
“We had some meetings. We have had many phone calls. We get along very well,” he added.
Prices are taxes billed on goods imported from other countries. Charges are considered a tool to protect the national foreign competition industries.
The increase in the price of imported goods aims to encourage consumers to buy cheaper interior products rather to strengthen the growth of their own economy.
Most prices are fixed as a percentage of the value of the goods and, in general, the importer pays it.
But since countries often react to prices by appearing their own measures, businesses and consumers in both countries can be affected.
Trump threatens to impose prices on goods imported from the EU in the United States to approach the long-standing trade deficit of his country with the block, which occurs when a country matters more than it exports it .
According to Eurostat, some 20 EU member states exported more to the United States than in 2023. The country with the largest surplus was Germany, driven by car and machines exports, followed by Italy and Ireland.
Trump has repeatedly complained about EU’s EU car exports to the United States, with fewer vehicles shipped in the other direction.
Last week, British Affairs Secretary Jonathan Reynolds told BBC that the United Kingdom should be exempt from prices, noting that the United States has no trade deficit in the United Kingdom.
According to Trump’s comments, the London FTSE 100 stock index of the largest co-hilted companies in the United Kingdom fell more than 1% at the opening.
The actions of some of the largest European car manufacturers have also dropped following concerns about potential import rights to the United States.
Volkswagen, BMW, Porsche, Volvo Cars, Stellantis and Truckmaker Daimler Truck all went between 5% and 6%. The supplier of French cars Valeo dropped by 8%.
“We think that about 8 billion euros (8.18 billion dollars) of VW income is affected by prices and around 16 billion euros in Stellantis revenue,” wrote Stifel investment analysts in a note.
The prospect of an increase in taxes introduced on imports in the United States concerns many world leaders because it will make companies more difficult for companies to sell goods in the largest world economy.
But prices are a central element of Trump’s economic policy. He considers them as a means of developing the American economy, protecting jobs and increasing tax revenue.
