US President Donald Trump on Wednesday (Feb 26) launched an attack on the European Union, claiming it was born to "screw" the United States, as he announced new tariffs targeting the longtime US partner.

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Hitting back, the EU said it was "the world's largest free market" and has been nothing but "a boon for the United States."

Trump on European Union

"Look, let's be honest, the European Union was formed in order to screw the United States," Trump told reporters during his first cabinet meeting since returning to the White House.

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"That's the purpose of it, and they've done a good job of it. But now I'm president," he added.

The US President alleged that the European Union has "really taken advantage of us."

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When asked if he has made a decision on how much tariff the US will impose on the EU, he said "We'll be announcing it very soon, and it'll be 25 percent, generally speaking." According to Trump, cars would be among the items to be hit with the taxes.

Last year's US trade deficit with the 27-nation bloc reached $235.6 billion, according to official figures.

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Trump's remarks come as tensions between Washington and its European allies continue to mount. Since Trump's inauguration, the US has dramatically shifted its stance on Ukraine and Germany's likely new leader, while also pushing for Europe to take greater control of its own defence.

European Union responds

Responding to Donald Trump's claims and threats, the European Union described itself as a "boon for the United States.

An unnamed source in the European Commission told AFP, "The European Union is the world's largest free market. And it has been a boon for the United States."

"We should work together to preserve these opportunities for our people and businesses. Not against each other".

The 27-nation bloc would respond "firmly and immediately" to new tariffs, added the report.

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On X, former Swedish prime minister Carl Bildt also blasted Trump and said he had a "seriously distorted view of history" as the EU was "actually set up to prevent war on the European continent."

For decades, Washington supported European integration, seeing the bloc's formation in 1993 as a safeguard against conflict after two world wars. Trump, however, has taken a different stance, cheering Brexit and pushing his "America First" agenda.

(With inputs from agencies)