Trump Imposes 30% Tariff on EU Imports, EU Vows Joint Response
US President Donald Trump has declared a 30% tariff on most EU imports from 1 August 2025, catching EU officials off guard. This move, part of Trump's effort to correct 'unfair trade practices', has been labelled 'absolutely unacceptable' by the EU. The EU has temporarily suspended retaliatory tariffs to pursue negotiations but is prepared for all outcomes.
The proposed tariffs, which also target Mexico, have far-reaching implications. They could disrupt transatlantic supply chains and increase consumer prices. Key EU exports like French cheese, Italian leather goods, German electronics, and Spanish pharmaceuticals are expected to be hit. The EU has a second package of countermeasures ready, targeting approximately €72 billion worth of US imports.
EU officials were surprised by Trump's latest escalation, having believed a trade deal was near completion just last week. Danish Foreign Minister Lars Løkke Rasmussen confirmed the EU's readiness to act jointly and robustly if required. Despite the setback, European Trade Commissioner Maroš Šefčovič stated that negotiations with Washington would continue.
Trump's tariff announcement has put the EU on alert. While the EU suspends retaliatory tariffs to keep dialogue open, it is prepared to respond if necessary. The EU is also broadening its trade agenda, recently signing an economic partnership agreement with Indonesia. The impact of these tariffs on consumers and businesses on both sides of the Atlantic remains to be seen.
