Europe confused in face of Trump’s 30% tariff threat

According to the Guardian, the EU had previously retreated from its aggressive approach and was seeking a minimal agreement with the U.S. However, Trump has once again changed the situation.

The report says the EU was pursuing a limited agreement similar to the UK’s, hoping to accept a 10% tariff on most imports in exchange for exemptions from the 27.5% tariff on car exports and the 50% tariff on steel imports.

The Guardian wrote that Russia was the main reason behind the EU’s change of position. As one diplomat acknowledged last week, during the NATO summit in mid-June, harsh realities were presented: it may take five to ten years for the EU to strengthen its air, missile, and intelligence capabilities on land and in the air to defend against military threats.

The British newspaper noted that "trying to predict Trump's decisions is a futile exercise." Nevertheless, Trump's surprise threat on Saturday to impose a 30% tariff on the EU has dealt a blow to the bloc’s confidence—a bloc which, according to diplomats, had already prioritized security and continental defense over trade.

One diplomat told the Guardian, referring to the threats against labor rights, freedom of speech, social welfare, and public services: “If the European Union does not stand up to Trump or insist on strict enforcement of laws, the question arises: What will remain of the rules-based international system?”

According to the report, European diplomats admitted that the deal they had been hoping for was already a major concession to the U.S. But once again, the tables have turned—this time by Trump. A 30% tariff will almost certainly lead to a trade war, as even a 15% tariff would be difficult to tolerate.