No histrionics as US president threatens 30% tariffs on European Union

Portugal has reacted calmly to today’s announcement by Donald Trump that the United States will be imposing tariffs of 30% on goods from the European Union from August 1.

For one thing, Portugal acts “always in conjunction with the European Union”, minister for foreign affairs Paulo Rangel said from São Tomé today – and for another, countries have started to get used to all these threats.

In the words of the BBC last week, Donald Trump’s White House grandly promised 90 deals in 90 days, after partially pausing the process of levying what the US president called “reciprocal” tariffs. In reality, there won’t even be nine” (in fact, according to Australian news ABC, there were only two, and only one of these has actually been published).

“Financial markets believe in the idea of TACO (Trump Always Chickens Out)… The White House may be playing hardball, but so are most other nations”, said the BBC.

Today, President of the European Commission Ursula Von der Leyen posted over social media: “A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic. We will continue working towards an agreement by August 1. At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures”.

In São Tomé, where he is accompanying President Marcelo on an official visit to celebrate the nation’s 50 years of independence, Paulo Rangel stressed “it is essential to understand that negotiations continue at least until August 1, which is the deadline, which has been moved from July 9” and is without any “final framework”.

In short, Portugal’s desire, like that of the EU, is to “reach an agreement”, he said.

President Marcelo stressed that it was “surprising” to hear today’s announcement during the middle of negotiations, but that he approved of the EU’s and Portuguese government’s ‘serenity’.

The leaders of several other European nations have come out in support of Von der Leyen’s position, and thus the ‘shock’ effect of Mr Trump’s 30% tariffs appears to have been muted.

Mr Trump made his announcement over his social network Truth Social, in the form of a letter to Ursula Von der Leyen, setting out the US position.

In the letter, he warned about a possible ‘European retaliation’: “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 onto the 30% we charge”, said the president – continuing: “Please understand that these Tariffs are necessary to correct the many years of European Union Tariff, and Non-Tariff policies and Trade Barriers, which cause the large and unsustainable Trade Deficits against the United States. This Deficit is a major threat to our Economy, and, indeed our National Security!”

Mr Trump spent last week sending similar letters to other trading partners – the majority of which have reacted in exasperation.

In Portugal, tabloid Correio da Manhã concedes that Mr Trump’s threat of adding further levies to the 30% in the event of ‘European retaliation’, “could trigger a commercial war of large proportions” (from which there could be no winners). ND