The European Union(EU) has cautioned that transatlantic trade could be “effectively wiped out” if the United States imposes a 30% tariff on goods imported from the bloc, as threatened by President Donald Trump. Maroš Šefčovič, the EU’s trade commissioner, emphasized that such a tariff would have a prohibitive effect on trade, making it “almost impossible” for the bloc to maintain its current level of trade with America.
Šefčovič stated, “A tariff of 30%, or anything above 30%… has more or less the same effect. So, practically it prohibits the trade.” He added, “If (the tariff) stays 30 (percent) plus, simply trading as we know it will not continue, with huge negative effects on both sides of the Atlantic.” The EU is keen to avoid a trade war and is working towards a negotiated solution, but Šefčovič warned that the bloc must prepare for all possible outcomes.
The EU-US trade relationship is substantial, with bilateral trade in goods and services valued at €1.68 trillion ($1.96 trillion) last year. The partners represent nearly 30% of global goods and services trade. Trump has repeatedly criticized the EU for unfair trading practices, pointing to EU tariffs on US goods and non-tariff barriers such as taxes on digital services.
The imposition of 30% tariffs would likely have significant consequences for both the EU and the US. Šefčovič noted that transatlantic supply chains would be heavily affected, and industry leaders are already expressing concerns. The EU has delayed implementing planned countermeasures on €21 billion worth of US exports to allow more time for negotiations. However, Lars Løkke Rasmussen, Denmark’s foreign minister, emphasized the need for the EU to prepare to retaliate if necessary, stating, “If you want peace, you have to prepare for war, and I think that’s where we are”.
European Commission President Ursula von der Leyen has also warned that the tariffs would disrupt essential transatlantic supply chains, harming businesses, consumers, and patients on both sides of the Atlantic. Bernd Lange, chair of the European Parliament’s Committee on International Trade, called the US move “a slap in the face” after weeks of talks and urged the EU to begin retaliatory measures.
Šefčovič will hold talks with US Commerce Secretary Howard Lutnick in a push for a deal. The EU is considering retaliatory measures, including targeting services and activating the EU’s anti-coercion instrument. The bloc is also preparing to deepen cooperation with countries affected by Trump’s tariffs, such as Canada and Japan.
As the August 1 deadline approaches, the EU faces mounting pressure to act decisively while continuing to pursue diplomatic solutions to avoid a full-scale trade war. The outcome of these negotiations will have significant implications for transatlantic trade relations and the global economy.