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US to impose 30% tariff on EU goods, Trump announces

Česká televize

Czech Republic

Saturday, July 12


9 minutes

US President Donald Trump has announced that the United States will impose a 30 percent flat-rate tariff on goods from the European Union starting August 1, Reuters reported. This is according to a letter the White House chief of staff sent to European Commission President Ursula von der Leyen and published on his social network Truth Social.

Von der Leyen stressed that the EU has been working for a long time to negotiate a solution. She added that imposing tariffs of 30 percent on EU goods would disrupt key transatlantic supply chains and harm businesses and consumers on both sides of the Atlantic.

According to the EC chief, the Union is ready to take the necessary steps to protect its interests."Including taking appropriate countermeasures if necessary," she noted. According to her, few economies in the world reach the EU's level of openness and adherence to fair trade practices.

European Council President António Costa stressed that free and fair trade drives prosperity, creates jobs and strengthens supply chains. The EU will continue to build strong trading partnerships around the world and fully supports efforts to reach a fair deal with the US.

European Commission spokesman Olof Gill said this week that the EU would like to reach a trade deal with the United States before August 1, and that it could be possible in the coming days.

Three unnamed EU officials told Reuters in response to the announcement that the threat of tariffs was just a negotiating tactic.

However, Trump warned in the letter that if the EU were to announce retaliatory tariffs, the United States would increase its tariffs by the same percentage. The EU had previously announced countermeasures, but postponed their entry into force.

Negotiations in Brussels

In response to the current events, an extraordinary meeting of EU member states' ambassadors has been called in Brussels for Sunday afternoon, Czech Television correspondent Petr Obrovský reported. The diplomats are expected to discuss how the EU should behave and what steps it should take, if any.

This is particularly the possibility of introducing countermeasures. The EU adopted the first package of countermeasures against US tariffs worth 21 billion euros (about 518 billion crowns) in April, but then postponed it for ninety days until Monday, July 14. If there is no further postponement, these measures should therefore come into force.

9 minutes

According to information from recent days, in connection with negotiations with the American side, further postponement of these countermeasures was considered, but it is not clear whether Trump's current decision has changed the situation.

"Trade ministers will gather in Brussels on Monday. This is a planned meeting, but in retrospect it shows how adequate its timing was," Obrovský continued. According to him, the states will seek an agreement that takes into account the interests of the entire 27.

Italian Prime Minister Giorgia Meloni's office said it was crucial to remain focused on trade talks with the United States to avoid further polarization. Meloni is confident that a"fair agreement" on tariffs with the United States can be reached and Rome fully supports the European Commission's efforts in this direction, the prime minister's office added.

Dutch Prime Minister Dick Schoof also said on the X network that the EC can count on Dutch support. He called the US announcement worrying."As the EU, we must remain united and determined" in pushing for a mutually beneficial outcome, Schoof stressed.

Fiala urges further action

According to Czech Prime Minister Petr Fiala (ODS), the introduction of 30 percent tariffs would have a negative impact on the EU's trade relations with the United States."The Czech Republic, together with our EU partners, continues to support constructive dialogue and the search for a diplomatic solution. We must respond unitedly and resolutely to protect our economic interests and ensure fair trade for our companies," the Prime Minister noted.

According to Karel Havlíček, the first vice-chairman of the ANO movement, Trump's unilateral decision is an"unprecedented debacle" for the Union."I don't know what was negotiated in recent weeks, because if I compare it to Great Britain, which concluded the agreement relatively quickly, it turned out significantly better," criticized Havlíček.

Minister of Industry and Trade Lukáš Vlček (STAN) sees no reason on the part of the US to impose such high tariffs."The European Union remains united and ready to protect its interests. Nothing changes from the fact that, in our opinion, it would be to the benefit of both parties, which form the largest trading relationship in the world, to find an agreement." He added that he is in regular contact with both European partners and representatives of Czech business and state administration.

How do business representatives see it?

Radek Špicar, vice-chairman of the Confederation of Industry and Transport, said that the Czech economy is a highly export-oriented economy,"which means that it would be among the most affected economies." However, he believes that there is still room for agreement and that an agreement will be reached.

Vice President of the Chamber of Commerce Radek Jakubský mentioned that these changes always come almost overnight."It can't be done like this. It also harms those Americans who hope that it will help them, that they will produce more. But you can't move any production to America with the snap of a finger, in a few days."

Thirty percent US tariffs would affect Czech companies primarily through exports to Germany, for which the US is the most important customer, said Otto Daněk, vice-chairman of the Czech Exporters' Association, adding that the tariffs could have a fatal impact on some Czech companies.

According to the President of the Trade and Tourism Association, Tomáš Prouza, Trump took advantage of the EU's weakness. According to him, Europe should therefore learn from its mistakes in the future and focus on its own reform."No matter what tariff Trump comes up with, it will never be worse than how we are damaging our economy ourselves. According to the International Monetary Fund, unnecessary internal barriers to the single market correspond to an intra-European 45 percent tariff on goods and a 110 percent tariff on services," said Prouza.

Economist: EU should not introduce reciprocal tariffs

It is unclear whether the announced amount of tariffs for the EU is final, according to Investika's chief economist Vít Hradil. However, he recalled that Trump had announced that he would want to reduce the trade deficit in goods."If he wanted to follow this logic to the end, the numbers should remain in these proportions, because they would correspond," he commented.

In his opinion, the EU should not respond by imposing double-digit flat tariffs on American goods."I am part of the majority economic community that believes that when you tax goods that flow into your country, you are primarily harming yourself. If the Americans have decided to do this, the worst thing we can do is make the same mistake."

12 minutes

According to Pavel Peterka, chief economist at XTB, the early effectiveness of the announced tariffs significantly limits the room for maneuver in the EU's negotiations with the US. If the tariffs are in effect, he says, greater impacts can be expected on the EU economy, including the Czech Republic.

"It may be a certain consolation that direct exports from the Czech Republic to the USA are not taking on significant dimensions. The impacts of trade wars will thus be reflected in the Czech Republic through secondary channels. That is, indirectly through our largest trading partners, where an example can be export-oriented Germany, with which the Czech economy is strongly linked," described Peterka.

He expects the biggest impacts on the Czech Republic to be several months away, during which negotiations with Washington can resume."Nevertheless, a slowdown in our economy can be expected this year," he noted. According to him, all of this will have an impact on limited wage growth, lower tax collections and larger budget deficits. According to Peterka, the Czech crown may also weaken due to the increased level of uncertainty.

According to Port analyst Jan Berka, the tariffs will have both a direct and indirect impact on the Czech Republic."For example, we export engines, telephones or microscopes. All of these items will be directly affected by the tariffs. Indirect impacts will come through deliveries of Czech goods to other European countries, which will then be exported to America," Berka said. He also pointed out the risk of weaker growth in the Czech economy.

The US and the EU are each other's largest export markets

"The European Union and the US are each other's largest export markets. Mutual trade amounts to $1.7 trillion," recalled Bohumil Vostal, a Czech Television correspondent in Washington. This amount is converted to almost 36 trillion crowns.

According to Vostal, Trump has long complained about the EU's surplus in this mutual trade."If we include both goods and services, the EU had a trade surplus of 50 billion euros (1.2 trillion crowns) last year. Trump complains that this deficit threatens American national security and the American economy. When it comes to trade in goods, the EU's surplus was 198 billion euros (4.8 trillion crowns), while in trade in services the EU had a deficit of 148 billion euros (3.6 trillion crowns)," he added.

7 minutes

Trump also released a letter to Mexican President Claudia Sheinbaum on Saturday, according to Reuters, which said Mexico would also face tariffs at the same level as the EU starting August 1.

In recent days, Trump has sent letters to a number of trading partners, including Japan, South Korea and Canada, announcing a 50 percent tariff on copper imports.

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