Former President Donald Trump has made headlines once again by asserting that the European Union (EU) was established “to screw the United States.” This controversial statement came as he unveiled plans to impose a hefty 25 percent trade tariff on the EU “very soon.” During his inaugural cabinet meeting, Trump expressed his belief that the EU has “taken advantage” of the U.S. by “refusing to accept” American automobiles and agricultural products. He has been vocal about his disdain for the EU’s trade practices, previously describing the longstanding trade deficit America has with the 27-member bloc as an “atrocity.”
In response to Trump’s remarks, a spokesperson from the EU highlighted that the formation of a regional market has actually facilitated business for American companies operating within Europe.
Why was the EU formed?
The European Union was founded in the aftermath of World War II, as the leading nations of the continent sought to forge closer ties to foster economic growth and avert future conflicts. In 1951, Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany took a significant step by signing the Treaty of Paris, which led to the establishment of the European Coal and Steel Community (ECSC) in 1952.
The ECSC created a free-trade area for vital economic and military resources, including coal, coke, steel, scrap, and iron ore. It was governed by four supranational institutions, including a Common Assembly and a Court of Justice, which laid the groundwork for what would eventually become the EU. The original six ECSC member states later expanded their economic cooperation through the signing of two additional treaties, leading to the formation of the European Economic Community (EEC) and the European Atomic Energy Community (Euratom) in 1958.
The EEC revolutionized trade policy on the continent by abolishing all internal tariffs among member states, creating a common market. The United Kingdom, Ireland, and Denmark became members in 1973, followed by Greece, Spain, and Portugal in 1985. The Maastricht Treaty, signed in 1992, established the European Union as it exists today, granting EU citizenship to all individuals who are citizens of member states.
Historically, relations between the EU and the U.S. have been largely positive, characterized by extensive cooperation in trade and military defense, bolstered by shared membership in NATO. Notably, 23 EU states are part of this military alliance, which the U.S. helped establish in 1949.
Trump’s Trade War
Since Donald Trump took office in January, U.S.-EU relations have soured at an alarming rate. The President has persistently threatened to impose 25 percent tariffs on the EU, akin to those targeted at America’s neighboring countries, Mexico and Canada, which are set to take effect on March 4. However, Trump asserted that the EU represents “a different case than Canada,” claiming, “They’ve really taken advantage of us in a different way.” He elaborated that the EU “doesn’t accept our cars and essentially refuses our farm products,” citing various pretexts for these restrictions.
Trump has alleged that the U.S. suffers from a trade deficit of about $300 billion with the European Union, a figure that is disputed by EU data, which estimates the deficit at $163 billion in 2023. He has long lamented that the U.S. carries the largest trade deficit in the world—reaching $1 trillion—when imports exceed exports, and he aims to rectify this imbalance through the implementation of tariffs.
Tariffs are essentially taxes imposed on goods imported from other nations, which can lead to increased costs for exporters who often pass these expenses onto consumers. Supporters of tariffs argue that they will incentivize consumers to purchase more affordable domestic products, thereby boosting U.S. manufacturing and stimulating economic growth. Conversely, critics warn that such measures could trigger rampant inflation, making it increasingly difficult for American consumers to afford goods.
The EU, as America’s third-largest trading partner, has indicated that it will respond to any unjustified tariffs with its own retaliatory measures. A spokesperson for the European Commission stated that the EU is prepared to react “firmly and immediately” to any tariffs that they deem unwarranted. “We’re ready to partner if you play by the rules,” they asserted, emphasizing the EU’s commitment to protecting its consumers and businesses.
Following Trump’s comments, former Swedish Prime Minister Carl Bildt remarked on social media that Trump possesses a “seriously distorted view of history,” noting that the EU was actually established to prevent conflict on the European continent. In light of the recent German elections, Friedrich Merz, a long-time supporter of the U.S., emphasized that Europe must now strive for “independence” from America in terms of defense. During a meeting at the White House, French President Emmanuel Macron corrected Trump’s claims regarding EU financial support for Ukraine, clarifying that it consists of a mix of grants, loans, and guarantees, stating, “We provided real money, to be clear.”
