Starting August 1, 2025, U.S. President Donald Trump will impose a tariff of 30 percent on all imports from the European Union (EU) and Mexico. This announcement is part of his strategy to reduce the U.S. trade deficit with the EU, a concern he views as a threat to national security.
Background and Justification
The measure affects a wide range of products from the EU and includes a special tariff of 50 percent on copper imports. Trump argues that the tariffs are necessary to balance the trade imbalances caused by the EU, which he claims are based on tariff and non-tariff trade barriers and the lack of reciprocity in trade with Europe.
Impact on Ongoing Negotiations
This announcement comes amid negotiations between the U.S. and the EU over a trade agreement. The release of the tariff plan is seen as an attempt to increase pressure on the EU. The EU, for its part, has already proposed a draft including key data, including import volumes for certain product groups.
Potential Impact on Investors and Markets
- Price increases on imported goods are expected, both from the U.S. and on European exports to the U.S.
- Companies may be burdened by higher costs, which could negatively impact profit margins and stock prices.
- An uncertain trade situation could lead to volatility in the markets.
- In the long term, a reorientation of supply chains is possible.
Overall, this development suggests an escalation of the transatlantic trade conflict with potentially far-reaching consequences for the markets.