Trans-Atlantic trade tensions escalated sharply this week as the European Union warned that its $1.96 trillion trade relationship with the United States could be devastated if President Donald Trump follows through on his threat to impose a 30% tariff on all EU imports starting August 1. EU Trade Commissioner Maroš Šefčovič stated Monday that such a tariff "practically prohibits the trade," adding, "It will be almost impossible for the bloc to continue its current level of trade with America if that new tariff rate is implemented."
Šefčovič emphasized, "If (the tariff) stays 30 (percent) plus, simply trading as we know it will not continue, with huge negative effects on both sides of the Atlantic." He said the EU would "do everything I can to prevent this super-negative scenario," but signaled that European leaders are preparing for the worst if negotiations collapse.
The looming deadline comes as President Trump, who has made tariffs a central plank of his economic strategy since returning to the White House, accused the EU of "ripping off" America for decades. "The United States of America has been ripped off on TRADE (and MILITARY!), by friend and foe, alike, for DECADES," Trump wrote on Truth Social. "It has come at a cost of TRILLIONS OF DOLLARS, and it is just not sustainable any longer - And never was!"
EU officials say they will delay the implementation of their planned countermeasures-worth €21 billion ($24.5 billion)-on U.S. goods until early August to leave room for further talks. These tariffs are in retaliation for the 25% U.S. levy on European steel and aluminum, which had been scheduled to trigger a new wave of European duties. Šefčovič confirmed that the Commission has now readied a much broader package of retaliatory tariffs, targeting €72 billion ($84 billion) worth of U.S. imports.
Italy's Foreign Minister Antonio Tajani told Il Messaggero, "A list of European duties worth 21 billion euros is ready, to which a second could be added. I am confident that there will be progress." He added, "The tariffs hurt everyone, starting with the United States. If the stock markets go down, Americans' pensions and savings are at risk." Tajani called for the eventual goal of "zero duties. An open market between Canada, the United States, Mexico and Europe."
President Trump's tariff threat comes on the heels of his accusation that the 27-nation bloc was "formed to screw" America, citing not just existing tariffs but "non-tariff barriers" such as digital service taxes. In May, Trump threatened to raise his "reciprocal" levy on EU goods from 20% to 50%, prompting the bloc to accelerate trade talks.
EU Commission President Ursula von der Leyen responded, "Imposing 30 percent tariffs on EU exports would disrupt essential trans-Atlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic." French President Emmanuel Macron posted on X that Trump's announcement came "after weeks of intense engagement" and vowed that Europe must "speed up the preparation of credible countermeasures."
On Sunday, the EU said it would suspend its previously planned retaliation against U.S. steel and aluminum tariffs to allow more time for dialogue. However, both sides have signaled a willingness to escalate. Trump warned on Truth Social, "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."
National Economic Council Director Kevin Hassett confirmed talks are ongoing with the EU, as well as Canada and Mexico, stating, "The president has set a deadline so that everybody gets the clarity that you all crave by the beginning of August."
