In the current customs dispute between the EU and the USA, US President Donald Trump has announced that starting June 1, 2025, he will impose punitive tariffs of up to 50 percent on goods from the European Union. These tariff rates are about five times higher than the current ten percent on many products and double the existing 25 percent tariffs on cars or aluminum.
Trump’s Stubbornness
Trump has shown himself to be unyielding, stating that he is not interested in an agreement but sees the deal with these high tariffs. However, he offered to discuss a ‘small delay’ if European companies would establish factories in the USA.
Europe’s Reaction
Bernd Lange, the trade policy spokesperson in the EU Parliament, has threatened countermeasures. The EU is considering not only counter-tariffs on US goods but also measures in the service trade – for example, digital taxes on US companies. This escalation could have significant repercussions for trade between the EU and the USA.
For German-speaking markets, this means uncertainty as it is unclear which tariffs will actually be implemented. A trade conflict of this magnitude can unsettle investors and hinder growth.
Long-Term Perspectives
The EU Commission aims for the long-term reduction of all industrial tariffs and a comprehensive free trade agreement with the USA. According to studies, such a deal could boost growth by about 0.6 percent for Germany and around 0.4 percent for the USA.
In summary, Europe is facing a potential escalation of the customs dispute with the USA under Trump’s rule. The EU threatens countermeasures such as new digital taxes against US companies, leading to uncertainties for businesses and investors.