Trump Hikes Tariffs on EU Goods to 15-20%

Donald Trump has decided to increase tariffs on all goods imported from Europe, aiming for a baseline rate of 15% to 20% in the next trade deal. This decision comes after multiple rounds of negotiations with Brussels, which initially aimed to keep tariffs at 10%. However, this proposal has been rejected by the White House. Officials close to the negotiations have stated that Trump is content with maintaining duties on European cars at 25%, the current rate.

This escalation is part of Trump's strategy to pressure the EU as they approach his August 1 deadline. If no deal is reached by then, he plans to impose a 30% tariff on all European imports, with no exceptions. A U.S. official has stated that even if an agreement is reached, Trump expects "reciprocal" tariffs to remain above 10%. This leaves Europe with little room to maneuver as the deadline approaches.

On Friday, Maroš Šefčovič, the European Commissioner for Trade, gave a closed-door briefing to EU ambassadors after his Washington meetings. Two diplomats present said Maroš painted a bleak picture, stating that the U.S. side did not budge, even as Brussels tried to pitch targeted cuts for specific sectors. No deal or movement was made, and a wall was met.

The same day, German Chancellor Friedrich Merz publicly admitted that things weren’t going well. “Whether we can still create sectoral rules, whether we can treat individual sectors differently from others, is an open question,” Friedrich said. “The European side supports this. The American side views it more critically.”

With Trump’s tariffs now looking like they’ll stay between 15% and 20%, the rates would land right where they were back in April, when trade talks started. That’s a full reset. A senior EU diplomat warned Brussels might be forced to retaliate, especially since the U.S. already slapped 50% duties on EU steel and aluminum. “We don’t want a trade war, but we don’t know if the U.S. will leave us a choice,” the diplomat said.

A second EU official confirmed things are shifting: “The mood has clearly changed” toward retaliation. “We are not going to settle at 15%,” they said, pushing back against settling for a number Trump seems locked into.

Brussels is preparing to roll out duties on €21 billion worth of U.S. goods starting August 6. That includes chicken and jeans. Another package targets €72 billion, with bourbon and Boeing aircraft on the hit list. A third group of countermeasures is still being drafted, and will likely include new taxes on digital services and online ads, according to someone involved in the talks.

The U.S. currently imports €380 billion in EU exports annually, which is out of a total €532.3 billion. That makes the U.S. the EU’s biggest single customer, accounting for a fifth of all European exports.