Trump’s New Tariff Policy
US President Donald Trump has announced that starting August 1, 2025, he will impose a 30 percent tariff on imports from the European Union (EU) and Mexico. This measure affects a wide range of EU products and could significantly raise prices for European goods in the US.
Reasoning and Objectives
The justification for this tariff increase, according to Trump, lies in the trade deficit of the US with the EU, which he views as a threat to national security. Trump criticizes the EU for tariff and non-tariff trade barriers that have led to a long-term imbalance. The tariffs aim to strengthen production in the US and reduce trade imbalances.
Negotiations and Economic Impact
This decision comes despite ongoing negotiations between the EU and the US regarding a potential trade agreement. The EU had already presented a draft to facilitate an agreement. However, Trump’s announcement of the tariff decision can be seen as a leverage to secure better terms.
The economic impacts are far-reaching: For German companies and other European exporters, their products could become significantly more expensive in the US, potentially leading to lost sales. Investors should closely monitor these developments, as they could also influence markets in Germany and across the Eurozone.
Additionally, Trump plans to impose higher tariffs on copper imports (50 percent) as well as punitive tariffs against other countries like Brazil or Canada. Overall, this policy signals a tightening of the global tariff conflict under his leadership.