US President Donald Trump has also sent the European Union a letter detailing the amount of tariffs that would be imposed starting August 1st if no agreement is reached. The tariff is set at 30%, well above expectations, with a further increase in the event of European countermeasures. Just four days ago, Trump stated that"Europe is treating us very well now." The most favorable scenario envisaged a 10% tariff on all European goods imported into the United States. Currently, negotiations are reported to be at a standstill. Trump's move could be a way to force Brussels to reach an agreement.
“Our relationship has, unfortunately, been far from reciprocal,” the president emphasizes in the letter, adding that if the European Union decides to retaliate with countermeasures, “the amount chosen, whatever it is, will be added to the 30% rate applied.” “If you wish to open your closed market to the United States and eliminate your tariff and non-tariff policies and trade barriers, we could perhaps consider amending this letter,” the letter continues. “As you know,” Trump adds, “there will be no tariffs if the European Union, or companies within the European Union, decide to build or produce products in the United States.”
A European Commission spokesperson said Brussels was already aware of the White House's decision."Yes, we were informed in advance," he said. A meeting of the permanent representatives of the 27 EU member states, the Coreper, has been called for tomorrow afternoon. In recent days, several Italian business associations, starting with Confindustria, have highlighted the dangers and repercussions of tariffs already at 10%.
Tariffs of 30% have also been imposed on Mexico."Mexico has helped me secure the border, but this is not enough. It has not yet stopped the cartels that are trying to turn all of North America into a drug trafficking playground. I cannot allow this to happen!" reads the letter to the Mexican government. The Mexican government criticized Trump's decision, calling it an"unfair agreement."
The White House had previously communicated the amount of tariffs to several other nations. These included Canada, for which the threshold was set at 35%, Brazil (50%), Japan and South Korea (both 25%). Last May, Great Britain reached an agreement on tariffs of 10%.
Tariffs are starting to show their first tangible results for the United States. According to data from the Treasury Department, US tariff collections increased again in June, exceeding $100 billion for the first time in a fiscal year and helping generate a surprising $27 billion budget surplus for that month. Tariffs thus became the fourth largest source of revenue for the federal government.
