Trump Threatens EU with 30% Tariffs

Donald Trump escalates the trade war with the EU, threatening to impose 30% tariffs if the parties fail to reach an agreement.

U.S. President Donald Trump threatens to impose 30% tariffs on all imports from the EU. The increase is set to take effect from August 1 if the parties do not agree on a trade deal, which they are currently negotiating.

He states that the current situation has led to "large and unsustainable trade deficits" for the U.S. Ursula von der Leyen, President of the European Commission, responds that the EU is ready for "countermeasures."

Drastic Increase

Trump's announcement signifies a drastic increase from the current 10% tariffs on all imports from the EU except cars, steel, and aluminum.

Trump announced the increases in a letter to European Commission President Ursula von der Leyen. It was published on his social media platform Social Truth on Saturday. He simultaneously announced the same increases for Mexico.

"The figure of 30% is far less than what is required to eliminate the trade deficit we have with the EU... If you for any reason decide to raise your tariffs and take countermeasures, the amount you choose to raise them by will be added to the 30% we charge," writes Donald Trump.

Ursula von der Leyen says that Trump's threat is "very provocative" and could lead to a larger trade conflict between the EU and the U.S.

"Very Provocative"

– Imposing 30% tariffs on EU exports would disrupt fundamental supply chains across the Atlantic, harming businesses, consumers, and patients on both sides... We will take all necessary steps to safeguard the EU's interests, and proportional emergency measures if required, she says and continues:

– The risks of an expanded trade conflict between the EU and the U.S. have increased.

Trump's threat comes as the U.S. and EU are negotiating a trade agreement.

Swedish Prime Minister Ulf Kristersson also regrets Donald Trump's decision.

"The Swedish government regrets the U.S. announcement, and we support the European Commission's desire to continue finding a negotiated solution. The EU is prepared to respond with tough countermeasures if necessary. But everyone loses in an escalated trade conflict," he writes on X.