Transatlantic trade on edge as Trump considers 50% tariff hike on EU goods

The European Union is set to learn on Monday whether President Donald Trump will proceed with plans to impose steep tariffs on EU imports—a move that could have significant economic consequences for businesses and consumers across both continents, according to Washingtontimes.

Earlier this year, Trump announced a 20% tariff on all EU-made goods, citing trade imbalances. However, shortly after implementing the measure in early April, he temporarily reduced the rate to 10% and delayed full enforcement until July 9, in order to calm markets and allow room for negotiations.

Frustrated with what he views as the EU's inflexible stance in ongoing trade talks, Trump has now threatened to raise tariffs to 50%, potentially affecting a wide range of European exports—including French cheeses, Italian leather, German electronics, and Spanish pharmaceuticals—with price hikes likely for U.S. consumers.

The European Commission, which handles trade for the EU’s 27 member states, expressed hopes for a last-minute deal with the U.S. government. If no agreement is reached, the EU says it is prepared to retaliate with counter-tariffs on American products such as beef, beer, car parts, and Boeing aircraft.

The EU describes its trade relationship with the U.S. as “the most important commercial relationship in the world.” In 2024, transatlantic trade in goods and services reached €1.7 trillion ($2 trillion)—an average of €4.6 billion per day, according to Eurostat.