US President Donald Trump announced on Saturday the imposition of a 30 percent tariff on all imports from the European Union (EU), effective August 1. The decision, delivered via formal letters, follows the breakdown of prolonged trade negotiations between Washington and Brussels.
This move marks a pivotal moment, as the EU is the United States’ largest trading and investment partner. Prior discussions aimed at establishing a bilateral trade agreement that would eliminate industrial tariffs failed to produce results. In response to the tariff decision, the EU is now considering countermeasures and the possibility of filing a complaint with the World Trade Organization (WTO).
Economic impact of Trump’s tariff on the EU
The 30 percent tariff is expected to significantly impact European exports to the US, particularly in key sectors such as the automotive industry, machinery, pharmaceuticals, and agriculture.
Germany, with its strong export-driven economy, faces a substantial threat to the sustainability of its trade operations.
The White House letter
In a letter addressed to European Commission President Ursula von der Leyen, President Trump emphasized the need for a fairer trade balance, citing longstanding trade deficits. He stated that starting August 1, a blanket 30 percent tariff would be applied to EU exports in addition to existing sector-specific tariffs. Goods rerouted through third countries to avoid tariffs will still be subject to the full 30 percent rate.
Trump described the tariffs as a necessary step in addressing what he called a structural imbalance caused by the EU’s tariffs, policies, and non-tariff barriers. However, he also invited EU companies to invest and manufacture in the US, promising expedited approvals and tariff-free access to the US market for domestically produced goods.
Von der Leyen’s response
European Commission President Ursula von der Leyen strongly opposed the US move, warning that it would disrupt critical transatlantic supply chains and negatively impact both European and US economies.
She reiterated the EU’s commitment to dialogue but underscored that the bloc is prepared to defend its economic interests. “The imposition of 30 percent tariffs on EU exports would damage vital supply chains, hurting businesses, consumers, and patients on both sides of the Atlantic,” she wrote in a public statement. Von der Leyen noted that the EU is actively pursuing a negotiated solution before August 1, but she left open the option of proportional retaliatory measures if needed.
A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic.
We will continue working towards an agreement by August 1.
At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.
— Ursula von der Leyen (@vonderleyen) July 12, 2025
Support from the European Council following Trump’s tariff on the EU
European Council President António Costa expressed his full support for von der Leyen, emphasizing the importance of fair trade and warning that tariffs could fuel inflation and undermine economic growth.
“Tariffs are taxes. They feed inflation, create uncertainty, and obstruct economic development,” Costa said in a statement on X (formerly Twitter). He reaffirmed the EU’s unity and readiness to protect its interests, while continuing to build strong global trade partnerships grounded in rules-based international trade.
Free and fair trade drives prosperity, creates jobs and strengthens supply chains.
Tariffs are taxes. They fuel inflation, create uncertainty and hinder economic growth. We will continue to build strong trade partnerships worldwide.
The EU remains firm, united and ready to…
— António Costa (@eucopresident) July 12, 2025