Introduction of Tariffs by Trump
US President Donald Trump has announced that starting August 1, 2025, a 30 percent tariff will be imposed on imports from the European Union (EU) as well as Mexico. This decision follows a prolonged period of negotiations between the US and the EU, during which the EU had hoped for a comprehensive trade agreement. Despite these efforts, the deadline extension until August 1 did not lead to any resolution. Trump published the corresponding letter to EU Commission President Ursula von der Leyen on his platform, Truth Social, thereby exerting pressure on the EU.
Economic Impacts
- Consumer prices are likely to rise as imported goods from the EU become more expensive due to the additional tariff.
- The automotive industry is particularly affected, as it heavily relies on transatlantic trade and had hoped for a compromise.
- The tariffs could lead to a further escalation of the trade conflict between the US and the EU, creating uncertainty for investors.
- The European Commission continues to strive for discussions with the White House to avert significant economic disadvantages.
Additionally, Trump has announced tariffs of 50 percent on copper imports and has either introduced or planned new tariffs against other countries like Japan, South Korea, Canada, and Brazil.
Overall, this escalation signals a deterioration of economic relations between the US and Europe with potentially negative consequences for consumer prices and the investment climate in both regions.