United States President Donald Trump announced on July 12 that, starting on Aug 1, the US will impose a 30 percent tariff on goods from the European Union. Trump justified this decision by accusing the EU of setting up tariff and non-tariff barriers, which he claimed had caused the US trade deficits. He further stated that the relationship between the two sides has been “far from reciprocal”.
The announcement triggered immediate backlash from European leaders. European Commission President Ursula von der Leyen issued a statement warning that these tariffs “would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic”. She confirmed the EU’s willingness to work towards an agreement by Aug 1 and vowed to take all necessary steps to defend its interests, including adopting proportionate countermeasures if required.
European Council President Antonio Costa echoed von der Leyen’s stance, supporting the commission in reaching a fair agreement with the US and condemning the tariffs for fueling inflation, creating uncertainty and hindering economic growth. Meanwhile, Bernd Lange, chair of the European Parliament’s committee on international trade, called Trump’s tariff threat “outrageous” and urged the EU to react with immediate countermeasures. Leaders from France, the Netherlands, Spain, Sweden, Italy and Denmark also condemned the US move.
As Trump continues to champion his “America First” policy, tensions between the US and Europe have escalated across multiple areas, placing further strain on the transatlantic partnership. Amidst rising trade frictions, the two sides are seeking to reduce their economic dependence on each other. The EU has launched a diversification strategy, with von der Leyen emphasizing that the European Commission continues to deepen global partnerships with other countries. At the same time, companies from Germany, France and the Netherlands are expanding their presence in Asian markets. This strategic shift is reshaping not only transatlantic economic relations, but also the broader global trade landscape.
Moreover, the US and the EU are becoming increasingly divided on issues such as multilateralism and global governance. At the Munich Security Conference in February, US Vice-President JD Vance accused Europe of “backsliding” on free speech and democracy. In an even more provocative gesture, Trump revived the controversial idea of annexing Greenland, issuing a territorial threat to a member state of the EU.
In the military sphere, disagreements are also mounting. Trump has pressed NATO allies to raise their defense spending to 5 percent of GDP. While they have maintained a united front on spending targets, actual implementation has been met with reservations. With the US linking security commitments to trade concessions, the EU has been forced to reassess its security strategy and promote greater defense autonomy.
As the 30 percent tariff is set to take effect, the transatlantic partnership is undergoing one of its most profound shifts in decades, signaling the beginning of a new era in global relations.
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