New US Tariffs: A Blow to Transatlantic Trade Relations
US President Donald Trump has announced that starting August 1, 2025, tariffs of 30 percent will be imposed on imports from the European Union. This measure also includes Mexico and specifies a special tariff rate of 50 percent for copper imports.
This news was surprisingly announced via Trump’s platform “Truth Social”. It marks an escalation in the trade conflict, as previously in April, only a tariff rate of 20 percent for EU products had been threatened. The new tariffs are intended to serve as leverage to push the EU into concessions in ongoing negotiations, which include limitations on import volumes, such as for cars.
Significant Impacts on the Eurozone
- Price Increases of EU Products in the US: US importers are likely to pass the higher duties on to consumers.
- Negative effects on the EU’s export economy, particularly in key industries such as automotive, machinery, and chemicals and pharmaceuticals.
- Rising prices for European goods in the US market could increase inflation.
- The purchasing power of consumers and investors in the Eurozone could be affected by lower export revenues and possible countermeasures.
In the long term, while Trump’s aggressive tariff policy may bring advantages as a negotiating pressure tactic in the short term, it could weaken US influence economically and geopolitically.
In summary: The 30 percent tariffs on EU goods, which will take effect in August, are likely to result in significant price increases and heavily burden transatlantic trade.