Donald Trump is reportedly pushing for a sweeping 15‑20 % tariff on every product the US imports from the EU, a move that would eclipse previous trade skirmishes and raise the stakes ahead of the August 1 deadline for new duties.
Key points
- Across‑the‑board levy: President Donald Trump is pressing advisers to draft a minimum 15‑20 % tariff on every good entering the U.S. from the European Union, according to the Financial Times.
- Timing: The idea could be folded into the tariff letters the White House plans to issue to “smaller nations” in the coming days, but would cover the entire EU bloc rather than bilateral deals.
- Rationale: Trump has complained that EU duties on U.S. products remain higher than reciprocal rates; the blanket approach sidesteps complex sector‑by‑sector talks.
- Pushback: EU finance ministers warned earlier this week that retaliatory measures would be “inevitable” if blanket tariffs take effect, although France’s finance chief said a compromise was still “close.”
- Market impact: U.S. importers of autos, luxury goods, machinery and pharmaceuticals would face immediate cost spikes; European stocks linked to U.S. sales (autos, spirits, luxury) slipped in early trading.
What’s next
U.S.–EU negotiators have been racing to craft a narrower deal before the Aug 1 deadline Trump set for new duties on Canada, Mexico and others. If a blanket EU tariff is formalised, Brussels is expected to lodge a WTO complaint and prepare counter‑tariffs on U.S. agriculture and industrial goods.
For now, the prospect of a 15‑20 % wall on trans‑Atlantic trade adds another layer of uncertainty for companies already dealing with inflationary pressure from earlier rounds of tariffs on metals, electronics and consumer goods.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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