How the EU hasn’t ‘screwed the US’, despite Trump’s claim

Donald Trump has claimed the European Union was formed “to screw the United States”, as he announced plans to impose 25 per cent trade tariffs on the bloc “very soon”.

Speaking at his first cabinet meeting, the US President said the EU had “taken advantage” of his country by “refusing to accept” American cars and agricultural products.

Trump has previously criticised the EU for not buying enough US goods, describing America’s long-standing trade deficit with the 27-member grouping as an “atrocity”.

Responding to Trump’s claims, a spokesperson for the EU said the creation of a regional market had made doing business in Europe easier for American firms.

Why was the EU formed?

The EU was formed in the wake of the Second World war, as the continent’s leading nations sought closer ties to promote economic growth and prevent future military conflict.

In 1951, the leaders of Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany signed the Treaty of Paris, establishing the European Coal and Steel Community (ECSC) the following year.

The ECSC created a free-trade area for several key economic and military resources: coal, coke, steel, scrap, and iron ore.

It was managed by four supranational institutions, including a Common Assembly and a Court of Justice, that would go on to form the basis of the EU.

The ECSC’s six founding members expanded their economic cooperation by signing two further treaties, forming the European Economic Community (EEC) and the European Atomic Energy Community (Euratom) in 1958.

Creating a common market, the EEC fundamentally reformed trade policy on the continent by abolishing all internal tariffs between members states.

The UK, Ireland and Denmark joined the EEC in 1973, with Greece, Spain and Portugal following in 1985.

The Maastricht Treaty, signed in 1992, created the European Union as we know it today, granting EU citizenship to every person who was a citizen of a member state.

Relations between the EU and the US have been historically positive, with extensive cooperation on trade and military defence, underpinned by shared membership NATO.

Twenty three EU states are part of the military alliance, which the US helped form in 1949.

Trump’s trade war

Relations between the US and EU have deteriorated rapidly since Donald Trump entered the White House in January.

The President has repeatedly announced plans to impose 25 per cent trade tariffs on the bloc, similar to those threatened against America’s neighbours, Mexico and Canada, set to come into force on 4 March.

But Trump said the EU is “a different case than Canada. “They’ve really taken advantage of us in a different way,” he added.

“They don’t accept our cars, they don’t accept, essentially, our farm products. They use all sorts of reasons why not.

“And we accept everything from them, and we have about a $300bn deficit with the European Union.”

“I mean, look, let’s be honest,” he told reporters. “The European Union was formed in order to screw the United States. That’s the purpose of it, and they’ve done a good job of it, but now I’m president.”

Asked what he would do if the EU retaliates, Trump said: “They can retaliate, but it cannot be a successful retaliation, because we just go cold turkey, we don’t buy anymore.

“If that happens, we win.”

The EU is America’s third largest trading partner alongside China.

His claim that US has a $300bn trade deficit with the EU is disputed, with EU data putting the figure at $163bn in 2023.

Trump has long complained that the US has the world’s largest trade deficit – when goods imports exceed exports – worth $1tn.

He hopes to address this imbalance through tariffs.

Tariffs are taxes charged on goods imported from other countries, imposing additional costs on exporters, who typically raise prices as a result.

Supporters argue this will encourage consumers to buy cheaper domestic products, boosting US manufacturing and helping to grow the economy.

Critics say it could lead to spiralling inflation, making it harder for US consumers to buy goods.

Former Swedish prime minister Carl Bildt, writing on X, said Trump had a “seriously distorted view of history” as the EU was “actually set up to prevent war on the European continent.”

Following the German election on Sunday, Friedrich Merz, who had been a long-term supporter of the US said Europe must now “achieve independence” from America on defence.

During his meeting in the White House in the week, Emmanuel Macron corrected Trump’s claim the EU had provided financial support to Ukraine via loans.

Like the US, he said, it was through a mix of grants, loans and guarantees, adding: “We provided real money, to be clear.”

The EU has promised to respond with retaliatory tariffs of its own.

A spokesperson for the European Commission said the EU would react “firmly and immediately against unjustified tariffs”.

“We’re ready to partner if you play by the rules. But we will also protect our consumers and businesses at every turn. They expect no less from us,” they added.