Trump says he will slap European goods with 25% tariff

US President Donald Trump said Wednesday that European cars and other goods will be hit with 25% tariffs.

"We have made a decision and we'll be announcing it very soon, and it'll be 25% generally speaking, and that'll be on cars, and all of the things," Trump told reporters during the first Cabinet meeting of his second term.

Trump also accused Europe of taking advantage of the United States.

"They don't accept our cars. They don't accept, essentially our farm product. And we accept everything of them," Trump said.

He claimed, without evidence, that the European Union (EU) was created "in order to screw the United States."

The EU currently collects a 10% tariff on vehicle imports, four times the rate of the US passenger car tariff of 2.5%.

EU vows to react 'firmly' to US tariffs

The European Commission, the EU's executive arm, shot back and said it is "the world's largest free market" and has been "a boon for the United States."

It added that the EU's single market "has facilitated trade, reduced costs for US exporters, and harmonized standards and regulations across 27 countries."

"The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies," a commission spokesperson said.

Edited by: Louis Oelofse