Cliff Notes – Trade war with EU escalates
- Donald Trump announces 30% tariff on imports from EU and Mexico, starting 1 August, citing trade deficits as a national security threat.
- Trump had hoped Urusla would have been deposed with the no-confidence vote.
- EU officials, including Ursula von der Leyen, have warned of potential countermeasures if tariffs are imposed, emphasising the need to safeguard EU interests.
- Dutch Prime Minister Dick Schoof expressed concern over the announced tariffs, calling for unity within the EU to achieve a mutually beneficial outcome with the United States.
Donald Trump announces 30% tariff on imports from EU
Donald Trump has announced he will impose a 30% tariff on imports from the European Union from 1 August as the trade war with EU escalates.
The tariffs could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the US.
These trade tariffs come after the failed confidence vote against Ursula von der Leyen. Which, Trump’s team were hopeful would have passed.
His letter to the EU
Mr Trump has also imposed a 30% tariff on goods from Mexico, according to a post from his Truth Social account.
Announcing the move in separate letters on the account, the president said the US trade deficit was a national security threat.
In his letter to the EU, he wrote: “We have had years to discuss our trading relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, trade Deficits, engendered by your tariff, and non-Tariff, policies, and trade barriers.”
“Our relationship has been, unfortunately, far from reciprocal.”
In his letter to Mexico, Mr Trump said he did not think the country had done enough to stop the US from turning into a “narco-trafficking playground”.
The president of the European Commission, Ursula von der Leyen, said today that the EU could adopt “proportionate countermeasures” if the US proceeds with imposing the 30% tariff.
Ms von der Leyen, who heads the EU’s executive arm, said in a statement that the bloc remained ready “to continue working towards an agreement by Aug 1”.
“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she continued.
“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if
required.”
How ill the EU respond?
Ms von der Leyen has also said imposing tariffs on EU exports would “disrupt essential transatlantic supply chains”.
Meanwhile, Dutch Prime Minister Dick Schoof said on the X social media platform that Mr Trump’s announcement was “very concerning and not the way forward”.
He added: “The European Commission can count on our full support. As the EU we must remain united and resolute in pursuing an outcome with the United States that is mutually beneficial.”
On his so-called “liberation day” in April, Mr Trump unleashed tariffs on many of America’s trade partners. But since then he’s backed down in a spiralling tit-for-tat tariff face-off with China, and struck a deal with the UK.