USA Trade dispute with EU seems inevitable after Trump's tariff package
US President Donald Trump has announced a huge tariff package. The US government is introducing new blanket tariffs of ten percent on most imports into the United States. A trade war with the European Union now seems inevitable.
02.04.2025, 22:32
03.04.2025, 02:59
SDA
The Republican announced in the White House Rose Garden that many countries would be subject to higher tariffs depending on their trade deficits. New tariffs of 20 percent are planned for imports from the European Union to the USA.
This is the most aggressive and far-reaching step in the US President's trade policy to date. This is likely to have a significant impact on the global economy. "They are ripping us off. It's so sad to see. It's so pathetic," said Trump, referring to the European Union (EU).
The Republican had touted the day of the announcement in advance as a "day of liberation" and announced the imposition of reciprocal tariffs. In principle, this means that the USA will raise its tariffs proportionately wherever it currently charges less than its trading partners. Now he wants to introduce a highly complex system that includes both reciprocal and blanket punitive tariffs.
Trump: This day will go down in history
Tariffs of ten percent are to apply universally to imports from all countries into the United States. Beyond this, there are to be individual punitive levies that vary from country to country. Countries that the US considers to have particularly high trade barriers for American products will be particularly targeted. In addition to tariffs, Trump repeatedly criticizes other trade barriers such as import requirements, subsidies and other regulations.
"This day will go down in history as the day American industry was reborn, the day America reclaimed its destiny, and the day we began to make America rich again," said Trump. "For decades, our country was looted, pillaged, raped and plundered, by nations near and far, by friends and foes alike." This is now over. Trump spoke of one of the most important days in US history. The "golden age" of the USA is returning.
Since returning to the White House, Trump has relied on tariffs - similar to his first term in office. He has already imposed punitive tariffs on all aluminum and steel imports, imposed tariffs of 25 percent on imported cars and car parts, introduced increased tariffs on all goods from China and targeted his neighbors Canada and Mexico. The car tariffs in particular are hitting Europe and the German car industry hard.
Tariffs have consequences for consumers
An import duty works in a similar way to a tax. It has to be paid by the importing company - in this case by the companies in the USA. It is likely that the importing companies will not simply bear the higher costs themselves. They are likely to pass them on to consumers - prices will rise and inflation could be fueled again. Trump's aim is to prevent US companies from importing products from abroad. This is intended to promote the USA as a production location in the long term.
As counter-tariffs are expected and exporting companies are likely to suffer a drop in sales, this could lead to a decline in production and possible job cuts, which could have a negative impact on the economy as a whole. An escalating trade conflict between the USA and the EU will therefore also have a noticeable impact on consumers in individual EU countries such as Germany. The German chemical industry has already called for a "cool head" and warned against an escalation spiral that would only increase the damage.
The Chairman of the Trade Committee in the European Parliament expects serious negative consequences from US President Donald Trump's new tariff decisions. "These unjustified, illegal and disproportionate measures can only lead to further escalation and a downward economic spiral for the US and the world as a whole," said German SPD politician Bernd Lange. Other members of the European Parliament expressed similar concerns.
With regard to possible responses to Trump's tariff policy, Lange said: "All affected countries must react as one and send a clear message to the USA to put an end to this tariff madness." The EU will now examine which instruments in its toolbox are best suited.
EU is Trump's permanent rival
Trump has repeatedly railed against the EU in public appearances. In principle, it is a thorn in Trump's side that European companies sell significantly more goods in the USA than American companies in the EU. The already known US tariffs on steel and aluminum imports as well as car imports had already fueled the trade dispute with the EU. The new punitive levies could be the straw that breaks the camel's back and lead to strong countermeasures from Brussels. The situation has been escalating for weeks.
Announcement against a special backdrop
Trump chose not just any venue for his tariff announcement, but the Rose Garden. It was the Republican's first event in the famous garden right next to the Oval Office following his return to the White House. Trump has described tariffs as his favorite word in the past and introduced various punitive levies during his first term in office.
He wants to use tariffs to correct trade imbalances and shift more production to the USA. The US president is also likely to want to demonstrate his strength by imposing tariffs, as he accuses other countries of taking advantage of his country. At the same time, the tariff revenue could be used to at least partially finance his expensive election promise of comprehensive tax cuts. Tariffs also serve the Republican as a means of exerting pressure to achieve his goals in negotiations with other countries.
