Donald Trump deals huge blow to EU with 30% tariffs slapped on bloc

Donald Trump has announced 30% tariffs on goods from the European Union and Mexico to begin on August 1. This presents a major setback for negotiations to avert the escalating trade war, in which the 27-country bloc had hoped to reach a comprehensive trade agreement with the US.

Officials in the European Commission, who have been leading the tariff negotiations, had believed a deal was ready to be signed, pending the approval of Mr Trump. They had hoped to reduce the 25% tariff on vehicles and abolish levies on spirits, aircraft and parts. The EU said it was also prepared to reduce its €198 billion (£171.5 billion) trade surplus in goods by committing to buying more US weapons and liquefied natural gas. However, in a letter to EU president Ursula von der Leyen, Mr Trump instead said he would raise import duties to three times higher than the initial blanket tariffs he introduced.

Mr Trump, in a letter to EU president Ursula von der Leyen, said he is implementing 30% tariffs on EU goods. (Image: Getty)

“Our relationship has been, unfortunately, far from Reciprocal. Starting on August 1, 2025, we will charge The European Union a Tariff of only 30% on EU products sent into the United States, separate from all Sectoral Tariffs,” The US president wrote.

In the letter, posted on his Truth Social social media platform, Mr Trump warned that efforts to retaliate with EU counter-tariffs on US products would be countered with even higher rates in return.

“If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge,” the letter said.

"Please understand that the 30% number is far less than what is needed to eliminate the Trade Deficit disparity we have with the EU."

The letter, dated July 11, said the US looks forward to working with the EU as a trading partner “for many years to come”.

Meanwhile, in his letter to Mexico's leader, Mr Trump said that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the US. However, he added that the country has not done enough to stop North America from turning into a “Narco-Trafficking Playground”.

This follows further new tariff announcements on several countries earlier this week, including Japan, South Korea, Canada, and Brazil.