Trump Announces 20% Tariff on EU Goods, EU Vows Retaliation

U.S. President Donald Trump has announced plans to impose a 20% tariff on all goods imported from the European Union, with no exemptions or exceptions. This move, expected to be announced on April 2, is part of a broader strategy to protect domestic industries and reduce reliance on foreign imports. The tariffs are anticipated to impact a wide range of goods, including those produced by major automakers and other industries.

European Union Trade Commissioner Sevkovic has warned that imposing a 20% tariff on goods imported from the EU would be "devastating" for the EU. The U.S. tariff level will be higher than at any stage since the late 1950s when the EU's founding members launched a common trade policy. The EU is unable to prevent the tariffs from being implemented due to the lack of substantive progress in negotiations. The EU's retaliatory measures may be delayed due to the need to evaluate specific details.

Trump's decision to impose tariffs on imported goods is part of a broader strategy to protect domestic industries and reduce reliance on foreign imports. He has previously imposed tariffs on a range of goods, including steel, aluminum, and computer chips, as well as on imports from China, Mexico, and Canada. The tariffs on Mexico and Canada have been partially suspended, but the exemptions are set to expire in April. Trump has also indicated that he plans to unveil a wide range of reciprocal tariffs on April 2, which he described as "very lenient" and impacting "all countries."

The EU's top trade negotiator has indicated that the bloc expects Trump to impose tariffs of about 20% next week, as part of his aggressive steps to cut trade deficits and protect domestic industries. The EU has vowed to respond with retaliatory tariffs on €18 billion worth of U.S. goods, which are set to come into effect in mid-April. The EU has also indicated that it will assess the tariff announcement, together with other measures the U.S. is envisaging in the next days.

The tariffs could have significant implications for the U.S. economy, as around half of all vehicles sold in the country are imported. The increased costs could lead to higher prices for consumers and potentially lower sales for automakers. The tariffs could also impact the competitiveness of the U.S. automotive industry, as companies may face increased expenses due to the tariffs. The U.S. has already imposed tariffs on a range of goods, including steel, aluminum, and computer chips, as well as on imports from China, Mexico, and Canada. The tariffs on Mexico and Canada have been partially suspended, but the exemptions are set to expire in April. Trump has also indicated that he plans to unveil a wide range of reciprocal tariffs on April 2, which he described as "very lenient" and impacting "all countries."