The European Union and South Korea announced they are working on trade agreements with Washington in response to US President Donald Trump’s threat of high tariffs expected to take effect on August 1.
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Trump announced last weekend that he would impose a 30% tariff on most imports from the EU and Mexico, triggering a new wave of trade wars that could include other countries such as Japan and South Korea.
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White House Economic Advisor Kevin Hassett said that current proposals do not satisfy Trump and that the tariffs are “real.”
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EU Trade Commissioner Maros Sefcovic stated that negotiations with the US could reach a positive conclusion, but warned that a 30% tariff would bring trade between the EU and the US almost to a standstill. “We are prioritizing finding a negotiated solution by August 1,” he said. German Chancellor Friedrich Merz emphasized that tariffs of this level would severely damage Germany’s export-oriented economy. The EU has postponed possible retaliatory measures for now, but Italian Foreign Minister Antonio Tajani announced they have prepared a list of tariffs on US products worth 21 billion euros. Trump has been using tariffs as a tool to stimulate production and attract investment to the US since his return to the White House. Although the “Liberation Day” tariffs announced in April shook the markets, subsequent postponements and backtracking have caused investors to approach such announcements more cautiously.
