Europe says Trump's new tariffs 'practically prohibit' EU-US trade
Photo: EU trade commissioner Maroš Šefčovič (Getty Images)
EU trade commissioner Maroš Šefčovič Maroš Šefčovič stated that the introduction of 30% tariffs on European imports would actually destroy transatlantic trade, The Guardian reports.
The European Union is warning of the risk of a complete freeze in trade with the United States due to a new initiative by Donald Trump.
The US President announced the implementation of 30% tariffs on goods from the EU starting August 1.
Šefčovič said in Brussels that such tariffs would "practically prohibit" trade between the EU and the US, which is valued at more than €4.4 billion daily.
According to the EU trade commissioner, both sides had been working over the past month on a trade agreement in principle, but Trump's blunt announcement disrupted the progress.
"We had the impression that we were very close to an agreement," Šefčovič emphasized.
EU prepares countermeasures
In response to this situation, the EU postponed the introduction of counter-tariffs on US goods worth €21 billion, which had been set to take effect on Monday.
However, EU ministers are now considering expanding the sanctions package to €72 billion.
Positions within the bloc vary:
- France insists on a tough response and the application of the new law on countering economic coercion.
- Germany is calling for a restrained, "pragmatic" reaction.
- Italy and Eastern European countries warn that escalation could impact US military support in the region.
"We don't want to escalate things then, on the other hand, we also need to flash some muscles," said Danish Foreign Minister Lars Rasmussen.
Pressure from both sides of Atlantic
Several EU countries also pointed to other shared challenges that require cooperation with Washington, including the fight against fentanyl flows and technological competition with China.
Meanwhile, Trump also criticized Canada and Mexico in his remarks, claiming they allegedly aren't doing enough to counter the flow of opioids into the US - even though these issues were not part of the EU negotiations.
Trump's tariffs
On July 12, US President Donald Trump announced that he was imposing 30% tariffs on imports from the European Union and Mexico.
According to the US President, starting August 1, goods imported from the EU and Mexico into the US will be subject to a 30% tariff.
In a letter to European Commission President Ursula von der Leyen, Trump wrote that their relationship "has been, unfortunately, far from reciprocal."
