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Donald Trump announces 30% tariff on goods from European Union

Saturday, July 12


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United States president Donald Trump has said he will charge a 30 per cent tariff on goods coming from the European Union from August 1st, in a move that significantly sets back negotiations to avert a trade war.

Negotiators from both sides have spent several intense weeks working on the broad strokes of an “agreement in principle”, aimed at stopping Mr Trump following through on threats to double import duties he has charged on European goods sold to the US.

Officials in the European Commission, who have been leading the tariff negotiations, had believed a deal was ready to be signed, pending the approval of Mr Trump.

In a letter to European Commission president Ursula von der Leyen, Mr Trump instead said he would raise import duties charged on goods sold into the US from the EU to 30 per cent, a significant increase on the blanket 10 per cent tariffs he introduced in April.

“Our relationship has been, unfortunately, far from Reciprocal. Starting on August 1, 2025, we will charge The European Union a Tariff of only 30% on EU products sent into the United States, separate from all Sectoral Tariffs,” he wrote.

The correspondence effectively blows up progress made in talks between EU and US officials, to draw up a preliminary trade agreement.

In the letter, which was posted on his Truth Social platform, Mr Trump warned efforts to retaliate with counter-tariffs on US products would be met with higher rates in return.

“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 on to the 30% that we charge,” he said.

“Please understand that the 30% number is far less than what is needed to eliminate the Trade Deficit disparity we have with the EU,” he wrote.

The letter, dated July 11th, said the US looked forward to working with the EU as a trading partner “for many years to come”.

In a statement, Ms von der Leyen said US tariff rates of 30 per cent would disrupt “essential transatlantic supply chains,” to the detriment of businesses and consumers on both sides.

“We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” the head of the EU commission said.

A commission spokeswoman said the EU executive had been given notice a letter from Mr Trump was coming, in advance of his social media post on Saturday.

Taoiseach Micheál Martin said the EU had “engaged in good faith to reach agreement on a positive and balanced way forward” with the US.

“I hope that negotiations will continue in the weeks ahead and that they will be successful,” he said.

Tánaiste and Minister for Foreign Affairs Simon Harris said Mr Trump’s letter was “deeply regrettable” and that there was “no necessity” to hike tariffs already imposed.

“The EU is at the negotiating table and will remain there. Now is the time to redouble our efforts and seek to achieve positive results in the time available,” he said.

French president Emmanuel Macron said the EU needed to get ready to hit back hard against the US. He said this should include using the EU’s anti-coercion instrument, which would give the commission the power to put levies on the digital ad revenues of US tech multinationals, if no deal was agreed by August 1st.

The Irish Government has opposed targeting US tech giants in the trade fight, given the high concentration of such companies in Ireland.

Mr Trump took aim at EU regulations he views as barriers to US products, such as food safety rules that bar chlorine-washed chicken from the European market.

“If you wish to open your heretofore closed Trading Markets to the United States, and eliminate your Tariff, and Non-Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” he wrote.

Levies of 10 per cent have been charged on practically all goods sold from the EU into the US since early April, with steel and cars facing even higher tariffs.

Across the board tariffs of 30 per cent would pose huge challenges to European businesses who trade with the US, effectively cutting many out of the market.

Mr Trump also announced a 30 per cent tariff on Mexican goods, beginning on August 1st. Earlier this week, Mr Trump issued new tariff announcements for a number of countries, including Japan, South Korea, Canada and Brazil.

Focus now turns to how the EU will respond and whether it will try to cajole the Trump administration back to the negotiating table, or retaliate with its own levies on US products.

Diplomats from the 27 EU states have been called in to an emergency meeting in Brussels on Sunday, to discuss the latest twist in the transatlantic trade row.

The commission, which sets the union’s trade policy, had largely finalised a package of EU counter-tariffs, in the event talks collapse without an agreement.

An initial batch of tariffs targeted €21 billion worth of US trade, hitting soybeans, oranges and steel. They had been put on ice while negotiations took place during Mr Trump’s first 90-day pause, suspending the higher rates of his “liberation day” tariffs.

The commission has drawn up a second package of tariffs on up to €95 billion worth of US products, targeting Boeing and the aviation sector, automobiles, bourbon, medical devices and agricultural produce.

It is understood the size of that second retaliatory package has been scaled back to impact around €70 billion worth of US trade, after national capitals lobbied to remove some US products and industries from the hit-list.

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