President Trump has issued a warning regarding potential 25% tariffs on imports from the European Union, alleging that the bloc was created “to harm” the United States.

During his first cabinet meeting of his second presidential term on Wednesday, Trump announced that tariffs on Canada and Mexico would commence on April 2. He also indicated that these tariffs would extend to EU goods.

“We will be making an announcement very soon,” Trump told the press. “It will generally be a 25% tariff, affecting vehicles and a wide range of products.”

He further remarked, “They have truly taken advantage of us… They don’t accept our vehicles or agricultural goods, citing various excuses. Meanwhile, we accept everything from them.”

The president is determined to address what he perceives as unjust trade practices by some of America’s closest neighbors and allies, pointing to ongoing trade deficits—where imports surpass exports—as evidence of these disparities.

Trump asserted, without providing evidence, that the European Union was established to undercut the United States.

“I have great affection for European countries. I have roots there, after all… But the European Union was created to undermine the United States… that has been its purpose, and they have succeeded. But I’m now the president,” he stated.

The EU was formed following the implementation of the Maastricht Treaty in 1993, built on a desire for post-war European unity. Its goals include establishing a unified market and promoting sustainable development.

Data from the European Commission reveals that the EU experienced a trade surplus of 155.8 billion euros ($159.6 billion) with the U.S. in 2023, though it faced a deficit of 104 billion euros in services. The primary EU exports to the U.S. include machinery and vehicles, along with chemicals, various manufactured goods, and pharmaceutical products.

The imposition of tariffs on EU imports could potentially lead to increased prices for U.S. consumers, with economists already cautioning against the inflationary effects of such import duties.

European markets are poised for a significant decline, as Trump’s threat of tariffs has unsettled the EU, which has previously indicated plans to respond “in a proportionate manner” to any such measures.

In response to Trump’s assertions, the European Commission committed to “immediate and decisive action against unjustified trade barriers, including tariffs that challenge legal and non-discriminatory policies.”

In light of Trump’s comments regarding the EU’s inception, the Commission pointed out that the EU has brought substantial benefits to the United States.

“The European Union constitutes the largest free market globally and has proven advantageous for the U.S. By establishing a cohesive single market, the EU has enhanced trade opportunities, lowered costs for U.S. exporters, and unified standards across 27 nations. Consequently, U.S. investments in Europe are remarkably profitable,” the Commission stated to CNBC.

The EU emphasized the importance of collaboration with the U.S. to safeguard mutually beneficial opportunities for businesses on both sides, rather than working against one another.

The possibility of tariffs is not unprecedented, as Trump has previously indicated similar threats against the EU and the U.K. However, he has suggested that a deal with the U.K. might still be on the table, as it maintains a more balanced trade relationship with the U.S.

This article includes contributions from CNBC’s Silvia Amaro.