EU warns retaliatory tariffs over Trump’s 30% import duty plan

The European Union has warned it will impose proportional countermeasures if Trump enforces a 30% tariff on EU goods starting August 1.

The European Union has issued a strong warning that it will take “proportionate countermeasures” if the U.S. President Donald Trump proceeds with his plan to impose a 30% tariff on European goods starting August 1.

European Commission President Ursula von der Leyen stated on Saturday, July 12, that while the EU remains committed to reaching a trade agreement with the United States, it will not yield to “unilateral measures and economic coercion.” She emphasized that the EU will take “all necessary steps to safeguard its interests,” including retaliatory tariffs if needed.

Trump, in a letter sent to von der Leyen, announced his intent to implement the 30% tariff unless the EU agrees to eliminate all tariffs on U.S. goods. He framed this condition as a prerequisite for any future trade deal.

In response, top EU leaders, including French President Emmanuel Macron, expressed firm support for von der Leyen’s stance. Macron urged the European Commission to utilize “anti-coercion tools” to defend EU interests and ensure a balanced trading relationship.

According to a Reuters report, the EU has already prepared two tariff packages targeting up to €93 billion worth of U.S. exports, should negotiations fail and Trump’s policy be enacted.

The European Central Bank has also warned that the proposed U.S. tariffs could slash eurozone economic growth by up to 1% and suppress inflation below projected levels, posing a new challenge to post-pandemic recovery.

Meanwhile, the American Chamber of Commerce in the EU has expressed concern that escalating trade tensions could jeopardize over $9.5 trillion in transatlantic economic relations, affecting investments, jobs, and consumer prices on both sides.

This looming trade dispute marks a significant test of U.S.-EU diplomacy amid shifting global alliances. The EU appears determined to resist economic pressure while maintaining space for negotiation.

As August approaches, both sides may intensify talks behind the scenes. However, without mutual compromise, a full-blown trade war could impact global markets and strain long-standing partnerships.

The post EU warns retaliatory tariffs over Trump’s 30% import duty plan appeared first on Khaama Press.