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American Focus > Blog > Economy > EU warns Trump’s 30% tariffs would eliminate transatlantic trade
Economy

EU warns Trump’s 30% tariffs would eliminate transatlantic trade

Last updated: July 14, 2025 4:20 am
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EU warns Trump’s 30% tariffs would eliminate transatlantic trade
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Trade between the EU and US is facing uncertainty as President Donald Trump threatens to impose 30 per cent tariffs, making it “almost impossible” according to the bloc’s trade commissioner, Maroš Šefčovič. The warning comes ahead of a meeting of EU trade ministers where Šefčovič will brief them on the state of talks with the US and possible retaliatory measures.

Trump’s recent announcement of the potential tariffs has caught Brussels off guard, with Šefčovič expressing concern over the impact it would have on transatlantic trade. He emphasized the disruption to supply chains and the negative response from industry leaders to the tariff policy.

Despite optimism about reaching an agreement, Trump’s letter containing the new tariff threat has raised doubts about the future of trade relations between the EU and the US. The EU is now considering a new package of retaliatory tariffs covering approximately €72bn of annual US imports, with some exemptions sought by member states.

Šefčovič is set to engage with US commerce secretary Howard Lutnick in a bid to salvage a deal, but the possibility of escalating tariffs looms large. The imposition of 30 per cent reciprocal tariffs could lead to further counter-reactions from the US, potentially escalating into a full-blown trade war.

While larger EU member states have been cautious about provoking Trump, there is growing support for a coordinated response against the US. Suggestions include utilizing the anti-coercion instrument (ACI) as a “trade bazooka” to counteract tariffs on goods that aim to influence policy changes.

As consultations with like-minded trading partners take place, the EU is evaluating its options to respond effectively to Trump’s tariff threats. With only a few countries reaching partial deals with the US, the future of transatlantic trade remains uncertain.

See also  April home sales slow with high mortgage rates, prices, putting chill into spring buying season

Overall, the escalating tensions between the EU and US highlight the challenges of maintaining a harmonious trade relationship in the current geopolitical climate. The need for diplomacy and strategic decision-making is paramount to avoid further disruptions in global trade.

TAGGED:EliminateTariffsTradeTransAtlanticTrumpsWarns
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