EU Warns US Tariffs Could Cripple Trade as Trump Threatens 30% Levy

July 14, 2025: The European Union has warned that transatlantic trade could be devastated if the United States proceeds with a 30% tariff on EU imports — a move proposed by President Donald Trump that could take effect on August 1.

EU Trade Commissioner Maroš Šefčovič sounded the alarm on Monday ahead of a key ministerial meeting in Brussels, stating that a 30% tariff would “practically prohibit” trade between the two economic powers.

“If the tariff stays at 30% or higher, trading as we know it will not continue,” Šefčovič said. “It would have huge negative effects on both sides of the Atlantic.” He added that such a scenario would make current trade levels “almost impossible” to maintain and vowed to do everything possible to prevent it.

Also read : Trump Warns Russia Of “Very Severe” Tariffs If Ukraine War Isn’t Resolved In 50 Days

The comments come as the EU seeks to finalize a deal with the U.S. that would cap tariffs at 10%, ahead of Trump’s August 1 deadline. Talks have been ongoing for months, and Šefčovič noted that the two sides were close to an agreement before Trump’s latest threat.

“The feeling on our side was that we were very close,” he said. “We didn’t spend three months drafting an agreement in principle and going through 1,700 tariff lines just for it to be upended by a single letter.”

President Trump has softened his tone in recent days, suggesting negotiations are still possible.

“We are open to talk, including to Europe,” Trump said at a White House event with NATO Secretary General Mark Rutte. “In fact, they’re coming over. They’d like to talk.”

However, Trump has also repeatedly criticized the EU for what he calls unfair trade practices, claiming the bloc was “formed to screw” the U.S. He has pointed to European tariffs on U.S. goods and digital service taxes as evidence.

Trump’s broader trade strategy, reignited since his return to office in January, includes steep tariff hikes aimed at eliminating the U.S. trade deficit and revitalizing domestic manufacturing. On social media Monday, he reiterated his stance:

“The U.S. has been ripped off on TRADE (and MILITARY!), by friend and foe alike, for DECADES. It’s not sustainable.”

In response to the 30% tariff threat, the EU has delayed retaliatory tariffs on $25 billion worth of American goods until early August to allow room for negotiation. However, the bloc is preparing a new set of countermeasures targeting $84 billion worth of U.S. imports, should talks break down.

Denmark’s foreign minister Lars Løkke Rasmussen emphasized readiness for retaliation, saying:

“If you want peace, you have to prepare for war. We should prepare to use all the tools in the toolbox.”

Meanwhile, European markets reacted nervously. The Stoxx Europe 600 index dipped 0.06% on Monday, having recovered from steeper losses earlier in the day.

As EU and U.S. officials continue high-stakes negotiations, both sides face mounting pressure to avoid a trade war that could impact nearly $2 trillion in annual transatlantic trade. Together, the EU and U.S. represent about 30% of global goods and services exchange, according to the European Council.