US President Donald Trump on Saturday sent a tariff letter to the European Union, imposing 30 per cent duty on the 27-nation bloc starting from August 1. He also sent a similar letter to Mexico.
In his letter to the European Commission president, Trump said the 30 per cent tariff is “far less than what is needed to eliminate the Trade Deficit disparity” between the US and EU. The fresh tariffs will be separate from all sectoral tariffs.
“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers. Our relationship has been, unfortunately, far from Reciprocal,” Trump wrote in the letter to the EU.
The fresh tariffs on EU come amid the bloc’s efforts to reach a comprehensive trade deal with the US. Trump had previously expressed optimism in negotiations with the EU after he took a U-turn on his decision to levy 50 per cent tariff on the Union.
He also warned that if the European Union hikes tariffs in retaliation, the US will add the number they choose to impose on the US onto the 30 per cent already charged.
However, he said there “will be no tariff” on goods from the 27-member Union and the companies within the EU, if they decide to build or manufacture product in the US.
According to the Office of the US Trade Representative, EU exported $553 billion worth of goods to the United States in 2022, making America the biggest recepient of European goods.
Besides EU and Mexico, Trump sent similar letters to 23 other nations this week, including the northern neighbour Canada and allies Japan and South Korea.
EU vows to take countermeasures
European Commission President Ursula von der Leyen on Saturday said the EU is ready “to continue working towards an agreement by Aug 1” but said it will take necessary measures to protect its interests, including taking countermeasures if needed.
“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she added.
