With his announcement, Trump appears to want to increase pressure on the EU to reach a trade deal. This week, there was still optimism from Brussels. The European Commission expected to reach an agreement with Washington within a few days. Insiders hinted at a deal that would spare the aircraft and automotive industries.

On Saturday, the US president shared a letter addressed to Von der Leyen on Truth Social. In it, he announced the 30 percent trade tariff. He also wrote that the tariffs would increase further if Brussels decided, in retaliation, to raise European tariffs on the import of American goods. That percentage would then be added to the tariffs for European goods.

Damage on both sides of the ocean

For now, the EU is not retaliating, according to an initial response from Brussels."We will continue negotiating," said Commission President von der Leyen. She added that the import duties are damaging essential supply chains and that businesses, consumers, and patients on both sides of the Atlantic will suffer the consequences.

Caretaker Prime Minister Schoof has also responded. He calls the American announcement on X 'worrying and not the way forward'."The European Commission can count on our full support," he added."As the EU, we must continue to work unitedly and resolutely for trade agreements with the US that are in our mutual interest."

Hope was for a 10 percent rate

Trump also shared a letter to Mexican President Claudia Sheinbaum on Truth Social on Saturday. Mexico will also face 30 percent tariffs.

Earlier this year, on April 2nd, a day the US president dubbed"Liberation Day" for the occasion, he announced import tariffs on products from dozens of countries. A 20 percent tariff would apply to goods from the EU.

The president later limited these tariffs to a"base rate" of 10 percent. He also set a deadline for reaching agreements with trading partners. Originally, that deadline was July 9th. It was later extended to August 1st.

Meanwhile, the EU and the US have tried to reach an agreement. These negotiations have been difficult. The European Commission has always emphasized its desire to reach a deal with the Trump administration because high trade tariffs benefit no one.

Few deals yet

Last week, Trump published letters to various countries on Truth Social, announcing the trade tariffs on their products. All these tariffs will take effect on August 1st. So far, Washington has only reached agreements with Great Britain and Vietnam. The Trump administration also struck a deal with China to reduce tariffs on both sides.