Tuesday, July 15, 2025 - The European Union has issued a stark warning: its trade relationship with the United States could be effectively "wiped out" if Washington implements a threatened 30% tariff on goods imported from the bloc.
Maroš Šefčovič, the EU’s trade commissioner, stated upon his
arrival at an EU ministerial meeting in Brussels on Monday that "30%, or
anything above 30%... has more or less the same effect. So, practically it
prohibits the trade.”
Šefčovič cautioned that it would "be almost
impossible" for the EU to maintain its current level of trade with America
if the new tariff rate takes effect on August 1 – the date stipulated by U.S.
President Donald Trump in his letter to the EU on Saturday.
"If (the tariff)
stays 30 (percent) plus, simply trading as we know it will not continue, with
huge negative effects on both sides of the Atlantic,” he added. "I will
definitely do everything I can to prevent this super-negative scenario.”
Following the meeting, Šefčovič reiterated that the EU's
preferred outcome is a negotiated deal with Washington and announced plans to
speak with his U.S. counterparts late Monday.
The EU-U.S. trade relationship is substantial. According to
the European Council, bilateral trade in goods and services between the EU and
U.S. was valued at €1.68 trillion ($1.96 trillion) last year. Together, the
partners account for nearly 30% of global goods and services trade.
However, Trump has repeatedly criticized the EU for what he
perceives as unfair trading practices. In April, he controversially claimed the
27-nation bloc was "formed to screw" America, citing EU tariffs on
U.S. goods and various "non-tariff barriers" like digital services
taxes to support his view.
Since re-taking office in January, Trump has increased — and
threatened to increase — tariffs on countries worldwide. His stated goals are
to eliminate the U.S. trade deficit, bring manufacturing jobs back to America,
and compel foreign nations to concede on key disputes.
On Monday, Trump asserted that America has given countries a
"free ride" for many years. "The United States of America has
been ripped off on TRADE (and MILITARY!), by friend and foe, alike, for
DECADES,” he wrote on his Truth Social platform. “It has come at a cost of
TRILLIONS OF DOLLARS, and it is just not sustainable any longer - And never
was!”
For months, EU trade officials have been negotiating with
their U.S. counterparts to avert Trump’s tariffs or mitigate their impact. When
the U.S. president threatened in May to raise his so-called
"reciprocal" levy on EU goods from 20% to 50%, the bloc accelerated
talks.
Šefčovič reiterated his belief on Monday that a deal had been
"very close" before Trump's latest tariff threat. He noted that the
bloc is demonstrating "enormous" levels of patience and creativity to
secure an agreement.
During the press conference, Šefčovič emphasized that the EU
would not have spent three months "drafting (a trade) agreement in
principle and going through 1,700 tariff lines,” discussing details from
agriculture to car parts, if it believed those efforts could be thwarted by a
single letter.
U.S. National Economic Council Director Kevin Hassett stated
on Monday that trade talks with the EU, Canada, and Mexico were "underway
still."
"I think that the president has
set a deadline so that everybody gets the clarity that you all crave by the
beginning of August,” Hassett told reporters at the White House.
On Sunday, the EU announced it would delay the implementation
of planned countermeasures on €21 billion ($25 billion) worth of U.S. exports
from Monday until early August, allowing more time for negotiations. These
countermeasures are in retaliation for the 25% tariff Washington imposed on all
steel and aluminum imports.
Šefčovič further disclosed during Monday’s press conference
that the European Commission, the bloc’s executive arm, has shared a proposal
with member states for a new round of countermeasures, targeting €72 billion
($84 billion) worth of U.S. goods imports.
Lars Løkke Rasmussen, Denmark’s foreign minister, stressed
that the bloc desires a fair deal but must also be prepared to retaliate.
"If you want peace, you have to
prepare for war, and I think that’s where we are. So, of course, we shouldn’t
impose countermeasures (at) this stage, but we should prepare to be ready to
use all the tool in the toolbox,” Rasmussen said before the meeting of EU trade
ministers on Monday.
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