Trade relations between the European Union and the United States have entered a new, much more tense stage.
US president Donald Trump officially announced last week the introduction of 30% tariffs on goods imported from the EU and Mexico from 1 August. This is simply a crucial exacerbation of the existing tariffs, which in February were 20% and in spring were temporarily reduced to 10%.
During her speech at the economical forum in Rome, European Commission president Ursula von der Leyen warned:
"We believe that customs is simply a failure to everyone. But we are not naive: we know that the relation with the US may never return to what was.”
The EC Head stressed that the European Union does not intend to stay passive against fresh US rates:
"We are ready to proceed work on reaching an agreement by 1 August. At the same time, we will take all essential steps to defend the interests of the EU, including, if necessary, proportionate countermeasures."
The European Union has already drawn up a list of American goods that may be subject to retaliatory duties. According to unofficial reports, the value of this list could scope EUR 95 billion.
Trump has led a customs policy since the beginning of his first word to reduce the US trade deficit. This year it has already covered 211 additional tariffs of countries, including Japan, South Korea, Mexico and the European Union. The EU is mainly about cars, household appliances, pharmaceutical products and food.
Von der Leyen recalled that the US is Europe's most crucial economical partner:
"US is the most crucial trading and investment partner of the European Union."
According to Eurostat, in 2024 the USA was the largest exporter to the EU and the second recipient of EU exports to China.
New duties are not the only point of inflammation. Trump has previously put force on European NATO members, demanding increased defence spending. In June, NATO adopted a fresh controversial 5% of GDP threshold on defence, which was to deter Russia. However, Spanish Prime Minister Pedro Sanchez called this request "unreasonable and counterproductive," to which Trump responded with the threat of "double" trade sanctions.
Financial markets are already responding to the threat of customs war. word contracts for American stock are falling, and the price of gold is rising as a safe haven. The U.S. Treasury Secretary announced that customs gross could scope a evidence of $300 billion in 2025.
Trump warned the public:
"If the EU responds with higher tariffs, we will number them to 30%."
Until 1 August Brussels and Washington hold talks. The EU wants to agree before fresh customs enter into force. The European Commission already has a list of US products worth €95 billion It will introduce additional duties if necessary. If there is no agreement, a full customs war is threatened. The economy on both sides of the Atlantic and all planet trade will suffer
Ursula von der Leyen concluded the situation clearly:
"We work tirelessly to find a preliminary agreement."
But can the worst be avoided? We'll know the answer in the coming weeks.
