US President Donald Trump is risking another global trade war after hinting that he would “absolutely” impose tariffs on the European Union (EU). This comes as he has already imposed sweeping tariffs on Canada, Mexico and China, prompting the three nations to retaliate against the US.

But the EU has insisted that it would retaliate “firmly” if Trump hit it with tariffs, adding that it hoped to avoid a trade conflict via negotiations.

When asked by reporters in the Oval Office if he was considering tariffs on the 27-nation bloc, the President replied, “Am I going to impose tariffs on the European Union? You want the truthful answer or a political answer? Absolutely.”

“The European Union has treated us so terribly,” he added.

During his first stint in the White House in 2018, Trump imposed tariffs on European steel and aluminium exports, sparking a trade war with the bloc.

This prompted the EU to retaliate with tit-for-tat tariffs on American goods including whiskey and motorcycles.

This is not the first time that Trump has been vocal against the EU. In the past as well, he has accused the bloc of treating the US “very, very unfairly” on trade.

In December 2024, the President threatened to start a trade war with the EU unless the latter bought more American oil and gas.

Meanwhile, tensions have also simmered over the US leader’s insistence on acquiring Greenland, with Denmark outrightly rejecting the idea of selling the mineral-rich island.

Trump, who has long expressed interest in Greenland for its natural resources and strategic Arctic location, has doubled down on the proposal since being re-elected.

EUROPEAN UNION WARNS OF RETALIATION

On Sunday, a spokesperson for the European Commission said that the EU “regrets the US decision to impose tariffs on Canada, Mexico and China”.

“Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides,” AFP news agency quoted the spokesperson as saying.

“The EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods. At this time, we are not aware of any additional tariffs being imposed on EU products.”

The spokesperson went on to say that the 27-nation EU remained committed to low tariffs to “drive growth and economic stability within a strong, rules-based trading system”.

He also reiterated the EU’s commitment to its trade and investment relationship with the US — “the biggest in the world”.

“There is a lot at stake. We should both be looking at strengthening this relationship.”

EU leaders are expected to discuss the looming tariff threat from Trump in Brussels on Monday.

(With AFP inputs)

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