Ben Pawlowski
PRESIDENT Trump has announced that the European Union will be hit with a 30% tariff on imports to the US from 1 August in a move likely to harm Spain’s economy.
In April, Trump announced an initial levy of 20% on goods from the US’ biggest trading partner – but that appears set to increase after a post on Trump’s social media platform, Truth Social.
In a letter to European Commission president Ursula von der Leyen, Trump said: “We have had years to discuss our trading relationship with the European Union, and have concluded that we must move away from these long-term-large, and persistent, trade deficits, engendered by your tariff, and non-tariff, policies and trade barriers.
“Our relationship has been, unfortunately, far from reciprocal.”
He added that the EU had ‘one of our largest trade deficits’ which represented ‘a major threat to our economy and, indeed, our national security’.
Mexico will also be whacked with the higher tariff – and Trump warned that he wouldn’t be afraid to impose even higher import taxes if either side decides to retaliate with reciprocal levies.
READ MORE: Spain’s Prime Minister Pedro Sanchez dismisses Trump’s tariff threat
The EU had hoped to agree a deal with the White House, but the deadline of 9 July passed without any formal agreement.
In response, von der Leyen said that the trading bloc would ‘continue working towards an agreement by Aug 1’.
“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she added.
“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
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