Trump’s 30% tariff threat would ‘practically prohibit’ trade — EU trade chief

The European Union has issued a stark warning that trade with the United States could collapse if President Donald Trump goes ahead with a 30% tariff on EU imports.

“A tariff of 30%, or anything above 30%, has more or less the same effect. So, practically it prohibits the trade,” said EU Trade Commissioner Maroš Šefčovič on Monday, as he arrived for a ministerial meeting in Brussels.

Šefčovič said it would be “almost impossible” for the EU to maintain its current level of trade with the US if the tariff takes effect on August 1, as stated in a letter Trump sent to the bloc over the weekend.

“If (the tariff) stays 30 (percent) plus, simply trading as we know it will not continue, with huge negative effects on both sides of the Atlantic,” he warned.

“I will definitely do everything I can to prevent this super-negative scenario,” he added.

The EU-US trade relationship is one of the strongest globally. According to the European Council, their bilateral trade in goods and services reached €1.68 trillion ($1.96 trillion) in 2024.

Together, they account for nearly 30% of global trade.

But President Trump has long accused the EU of unfair trade practices.

In April, he claimed the 27-nation bloc was “formed to screw” America.

He has also pointed to EU tariffs on American products and various “non-tariff barriers,” including digital services taxes.

Since returning to office in January, Trump has increased or threatened tariffs on multiple countries.

His administration says the moves are aimed at reducing the US trade deficit, boosting manufacturing jobs, and pressuring trade partners into better deals.

EU officials have been negotiating with their US counterparts for months to prevent or limit the damage of Trump’s proposed tariffs.

After Trump threatened in May to raise the “reciprocal” levy on EU goods from 20% to 50%, the EU accelerated talks.

Šefčovič said there was hope. “The feeling on our side was that we are very close to an agreement,” he said.

He noted that the EU had shown “enormous” patience and creativity in trying to secure a deal.

To allow more time for negotiations, the EU announced Sunday that it would delay retaliatory tariffs on $25 billion (€21 billion) worth of US exports until early August.

These countermeasures were planned in response to Washington’s 25% tariffs on EU steel and aluminum.

Denmark’s Foreign Minister Lars Løkke Rasmussen also urged caution but readiness.

“If you want peace, you have to prepare for war, and I think that’s where we are,” he said.

“So, of course, we shouldn’t impose countermeasures (at) this stage, but we should prepare to be ready to use all the tool in the toolbox.”

Following Trump’s threat, European stocks dropped at the start of the trading week.

The Stoxx Europe 600 index was down 0.27% by early Monday afternoon, Central European Time.

David Goldman contributed reporting.

(CNN)

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