President Donald Trump announced on Saturday via social media that a 30% US tariff will be imposed on goods imported from both the European Union (EU) and Mexico, effective August 1.
The EU had been pursuing a comprehensive trade agreement with the US, aiming to cover the entire 27-country bloc.
In a letter shared on his Truth Social platform, Trump cautioned that any retaliatory counter-tariffs by the EU on US products would be met with even higher rates in return.
“If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge,”
“Please understand that the 30% number is far less than what is needed to eliminate the Trade Deficit disparity we have with the EU,” he stated.
After an expansion of Trump’s tariff war in recent days, the European Union anticipated the letter outlining his planned duties on what is the United States’ largest trade and investment partner.
Initially, the EU sought a comprehensive trade agreement, envisioning zero tariffs on industrial goods. However, after months of challenging negotiations, the bloc now anticipates settling for an interim agreement, hoping for a more advantageous deal in the future.
The 27-country bloc faces internal division, with economic powerhouse Germany pushing for a swift agreement to protect its industry, while other EU members, such as France, advocate against conceding to a one-sided deal dictated by US terms.
