Trump plans massive 30% tariffs on EU imports – what does that mean for us?

Trump plans massive 30% tariffs on EU imports – what does that mean for us?

US President Donald Trump plans to impose 30 percent tariffs on imports from the European Union from August 1st. This announcement was made both via Trump's Truth Social platform and in a letter to the EU. A similar tariff rate should also apply to Mexico. As early as April 2023, Trump presented tariffs on goods from almost all countries in the Rose Garden of the White House, with a rate of 20 percent originally planned for the EU. These developments sent panic across Europe and led to a decline in stock market prices worldwide.

A week after the initial announcement, Trump promised a 90-day tariff break in order to reach agreements with his trading partners. The deadline for these negotiations has now been extended to August 1st. During this time, Trump even threatened the EU with tariffs of up to 50 percent. Currently, the base tariff for almost all imports into the US is ten percent, in addition to special tariffs on certain products such as steel, aluminum and cars. The aim of this tariff policy is to increase production in the USA and increase revenues in the national budget, with Trump himself emphasizing that the new tariffs could trigger turbulence on the stock markets, although this uncertainty is already taken into account in the price adjustments of many traders.

Agreement uncertain

Despite the harsh rhetoric, Trump hints at possible agreements in the trade conflict with the EU, but does not rule out punitive tariffs. In a telephone conversation with EU Commission President Ursula von der Leyen, he described the ongoing negotiations as “very nice”. He plans to send another letter to the EU in two days, which he believes will signal a deal. Trump criticizes the EU for past trade practices and points to billions in fines for companies like Google and Apple.

On Monday, Trump informed 14 countries about massive tariff surcharges of between 25 and 40 percent, which are also due to come into force on August 1, 2025. He made it clear that all monies are due from that date, with no extensions. However, the EU Commission and individual member states express confidence that an agreement can be reached quickly. Bernd Lange, Chairman of the Trade Committee in the European Parliament, reported ongoing negotiations on a three-page text.

Special extra tariffs planned

In addition, Trump is planning special additional tariffs on certain industry imports. Copper imports should be charged up to 50 percent and pharmaceuticals even up to 200 percent. A transition period of up to 18 months is planned for pharmaceutical companies to relocate production to the USA. High extra tariffs have already been introduced on cars, car parts, steel and aluminum, which has a significant impact on the German economy. In May, exports to the USA fell by 7.7 percent to 12.1 billion euros. Dirk Jandura, President of the BGA export association, describes the situation in foreign trade as dramatic and worrying.

The industry is therefore facing massive challenges, while the uncertainty surrounding tariff increases is weighing on the markets. Trump's announcements and their possible effects are causing tense exchanges between the USA and the EU - a situation that continues to raise many questions.

The developments of the upcoming tariffs and their impact on international trade must be followed closely by both experts and politicians, as they could have a significant impact on global trade relations. For further information and details on current developments, we refer to the analyzes by South Germans and ZDF.