US President Donald Trump has hinted that he would "absolutely" impose tariffs on the European Union (EU), putting the world at risk of another trade war. This occurs after he previously placed broad tariffs on China, Canada and Mexico, which caused the three countries to launch counterattacks against the US.

However, the EU has stated that it would respond "firmly" if Trump imposed tariffs on it, adding that it sought to resolve a trade dispute through talks. Reporters in the Oval Office questioned the President about whether he was thinking about imposing tariffs on the 27-nation group. He responded, "Am I going to impose tariffs on the European Union? You want the truthful answer or a political answer? Absolutely." "The European Union has treated us so terribly," he added. "The European Union has treated us so terribly," he added. 

In 2018 when Trump was first in the White House, he placed tariffs on steel and aluminium imported from Europe, which led to a trade war with the European Union. In response, the EU imposed similar tariffs on American products, including whiskey and motorcycles. 

Trump has been outspoken in his criticism of the EU before. He has already charged the group of "very, very unfairly" treating the US in trade. The President vowed to launch a trade war with the EU in December 2024 if the EU did not purchase more American gas and oil. Tensions have also risen over the US leader's push to acquire Greenland, with Denmark firmly rejecting the idea of selling the island, which is rich in minerals. Trump, who has shown interest in Greenland for its natural resources and strategic location in the Arctic, has continued to push for the proposal since his re-election. The European Union "regrets the US decision to impose tariffs on Canada, Mexico, and China," a European Commission official stated on Sunday. "Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides," AFP news agency quoted the spokesperson as saying. 

"The EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods. At this time, we are not aware of any additional tariffs being imposed on EU products." The EU's 27 member states are still committed to reducing tariffs in order to "drive growth and economic stability within a strong, rules-based trading system," the spokeswoman continued. Furthermore, he reaffirmed the EU's dedication to its "biggest in the world" trade and investment relationship with the United States. "There is a lot at stake. We should both be looking at strengthening this relationship." EU leaders are set to meet in Brussels on Monday to talk about the potential tariff threat from Trump.