Customs war threatens: Trump announces 30% tariffs on EU goods!

Customs war threatens: Trump announces 30% tariffs on EU goods!

US President Donald Trump has announced a renewed escalation in the trade conflict with the European Union (EU). He plans to increase tariffs on European products to a whopping 30 percent from August 1st. In doing so, Trump defends the interests of the USA and blames the EU for the large trade deficit. This decision has caused a wave of concern in Europe, especially as the EU is already threatening to respond with counter tariffs.

In this tense situation, the EU has put on hold its counter-tariffs against the United States, which were originally supposed to come into force on Tuesday. EU Commission President Ursula von der Leyen emphasizes that an agreement will be worked on in the next two weeks. If an agreement is not reached, the EU is ready to take countermeasures to defend its economic interests.

The impact on trade

The new tariff rate applies to all goods the EU wants to import into the US, with restrictions on certain industries. The German economy in particular will be severely affected by this announcement, as export figures have already collapsed due to previous tariffs, particularly in the auto industry. The Federation of German Industries (BDI) describes the tariff announcement as an “alarm signal” for both economic areas.

The German economy had hoped for a basic tariff rate of just ten percent, which was considered manageable. However, a tariff rate of 30 percent would place a considerable burden on the export-dependent German economy. In addition, experts, such as ZDF economic expert Florian Neuhann, also see the USA as a loser from the tariff increase, as price pressure in the USA would increase. Many economists believe Trump may back off on tariffs, reflecting his past approach.

Political reactions and the role of the EU

There are intensive discussions on the EU side about how to respond to Trump's threat. Bernd Lange, the chairman of the Trade Committee in the European Parliament, is calling for a clear response from the EU, including the activation of compensatory measures. Given the threat of tariff increases, the question arises as to whether Europe should give in to American threats or counter with its own measures.

The situation remains tense. Trump and the EU must carefully manage the negotiations to prevent the trade conflict from escalating further and causing both the European and American economies to suffer. The coming days will be crucial in determining whether an agreement can be reached or whether there is a risk of further escalation.

In summary, the EU is not only the largest common market in the world, but also an important trading partner for the USA. The challenges arising from this conflict are both complex and far-reaching. We will have to wait and see how the situation develops and whether Trump's threats will ultimately be translated into concrete measures.

South German newspaper and ZDF report on the latest developments in this trade conflict.