U.

S. President Donald Trump has announced plans to impose reciprocal tariffs on countries he accuses of unfair trade practices, with a particular focus on the European Union (EU).

Trump claims the EU's Value Added Tax (VAT) acts as a hidden trade barrier, disadvantaging American exports.

While the EU applies VAT uniformly to both domestic and imported goods, Trump argues it creates liquidity challenges for U.

S. exporters.

The proposed tariffs aim to match those imposed by trading partners, potentially increasing costs for European exports to the U.

S. Analysts warn this move could escalate trade tensions, raise inflation, and disrupt global markets.

The EU, which already has a trade surplus with the U.

S., may face significant impacts in sectors like automotive and agriculture.

However, the tariffs are not yet finalized, leaving room for negotiation.