U.S. President Donald Trump has announced his intention to increase tariffs on all goods coming from Europe to 15-20% ahead of upcoming trade negotiations, which may lead to a new trade conflict.
Escalation of Tariff Policy
Trump rejected the EU's proposal to reduce auto tariffs and confirmed that U.S. rates would remain at 25%. If no agreement is reached by August 1, he plans to impose a 30% tariff on all European goods.
Europe's Reaction and Internal Divisions
European diplomats have expressed concern over the situation, doubting the possibility of reaching a compromise. EU Trade Commissioner Maroš Šefčovič noted that the U.S. remains steadfast, and internal disagreements on approaches may exacerbate the situation.
Markets React to Tariff Threats
News of the tariff increase caused a slight dip in the U.S. stock markets. However, traders do not see this as a threat, having faced similar situations in the past. Meanwhile, Europe is preparing countermeasures, including import tariffs on U.S. goods worth around €21 billion.
Trump's tariff increases create the likelihood of a new trade conflict between the U.S. and the EU. European authorities are preparing retaliatory measures, which may lead to further escalation of tensions.
