US President Donald Trump announced tariffs of 30% on goods from the European Union. Brussels and Washington were in the process of negotiating a trade agreement on this matter. The US President stated that he had „decided to move forward.”
Just as he did with other countries, the American President informed the EU through a letter addressed to Ursula von der Leyen, President of the European Commission. In his message, Trump stated that „it is a great honor for him to send this letter, which demonstrates the strength and commitment of our trade relationship,” as reported by Reuters, cited by News.ro.
The real estate magnate continued by emphasizing the size of his country's trade deficit with the European bloc. It amounts to 157 billion euros for goods, but only 48 billion euros when goods and services are taken into account, as recently noted by BFM Business.
Trump says he made a "reduction"
In his opinion, the magnitude of this deficit justifies the introduction of customs duties. He makes sure to specify that these will only increase to "just" 30% starting August 1.
"Please understand that this 30% rate is much lower than what would be necessary to eliminate the trade deficit we have with the EU," insisted Donald Trump.
"As you know, there will be no tariff if the European Union, or European companies, decide to build or manufacture products in the United States and, in fact, we will do everything possible to obtain approvals quickly, professionally, and systematically, in other words, within a few weeks," stated the American President.
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The American President also announced 30% tariffs on imports from Mexico.
What was the tax rate before Trump's return
Until now, most exports from the Old Continent to America were taxed at 10%, while cars were taxed at 25%, and steel and aluminum at 50%.
Before Trump came to power, the United States only levied 2.5% on the value of the main European imports.
Donald Trump added that he would raise these tariffs again if the EU retaliates.
The European Commission, solely responsible for negotiating the European Union's (EU) trade agreements, has tried to conclude a preliminary agreement with the United States. Unlike the United Kingdom, the EU chose to extend the negotiations, hoping to achieve a better deal. However, pressure from the US has increased in recent days.
Brussels' Response: EU will defend itself
The European Union is prepared to take the necessary steps to protect its interests if the US imposes 30% customs duties on EU goods starting August 1, said European Commission President Ursula von der Leyen on Saturday, as reported by Reuters and AFP, cited by Agerpres.
Von der Leyen, who heads the EU executive, stated in a release that the bloc remains prepared "to continue working towards reaching an agreement by August 1." "Few economies in the world match the EU in terms of openness and adherence to fair trade practices," she added.
"We will take all necessary steps to protect EU interests, including adopting proportionate countermeasures if necessary," warned the EU executive chief.
"Imposing 30% customs duties on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers, and patients on both sides of the Atlantic," von der Leyen emphasized.
Dutch Prime Minister Dick Schoof reacted to Trump's announcement, characterizing it as "concerning." "The European Commission can count on our full support. And the EU must remain united and determined in trying to achieve a mutually beneficial outcome with the US," he stated.
Italian Prime Minister Giorgia Meloni, in turn, pleaded for the parties to remain focused on trade negotiations and to avoid escalating polarization.
The Italian Prime Minister expressed confidence that "a fair agreement" on customs duties between the EU and the US can be reached. Rome fully supports the efforts of the European Commission, Giorgia Meloni's office further announced.