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Former US President Donald Trump has also become more tough in trade talks with the European Union, calling for much higher tariffs on foreign imports in any new deal. Trump is reportedly now asking for minimum tariffs of 15–20%, higher than the previously offered 10%, indicating a more confrontational strategy towards transatlantic trade.
The move follows as Trump scotched a recent EU proposal to cut car tariffs, insisting on imposing a 25% tariff on European car imports. Moreover, his government recently issued similar threats to 23 other trading partners including Canada, Japan, and Brazil, threatening across-the-board tariffs of 20% to 50% if new trade agreements are not completed by August 1.
The US is already imposing tariffs of 50% on steel and aluminum as well as 25% on cars, which are bringing in high monthly revenues. But this hawkish tariff strategy is antagonizing America’s allies.
German Chancellor Friedrich Merz expressed dismay on Friday, citing the US’s refusal to negotiate sector-specific exemptions. “The European side is in favor of this. The American side looks at it more skeptically,” he said.
A high-ranking EU official threatened that Trump’s first step toward implementing permanent reciprocal tariffs of 15–20% might lead Brussels to take countermeasures. “We don’t want a trade war, but we don’t know if the US will leave us an alternative,” the official said.
As the US government goes on to reap financially from these tariffs, political and diplomatic expenses can be escalating. Experts warn that Trump’s tactics are likely to further destabilize already tense transatlantic relations and provoke retaliatory economic action from long-time allies. With the August 1 deadline looming, tensions are heating up over the fate of global norms and cooperation in trade.
