Trump Escalates EU Trade War with New Tariffs and Executive Order Targeting Tech, Imports, and Strategic Sectors
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Trump Escalates EU Trade War with New Tariffs and Executive Order Targeting Tech, Imports, and Strategic Sectors
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A major development: President Trump has just signed a new executive order on September 5, 2025, altering the U.S. reciprocal tariffs regime. According to trade compliance analysts, this order adjusts previous tariffs announced back in April. Some goods—like certain bullion-related articles, key minerals, and pharmaceutical products—are now exempt from the reciprocal tariffs if an investigation is pending. On the other hand, newly targeted goods include specific aluminum hydroxide, resin, and silicone products.
There’s also a new “Potential Tariff Adjustments for Aligned Partners” annex. This means products such as aircraft parts, certain pharmaceuticals, natural resources, and agricultural goods not sufficiently produced in the U.S. could be subjected to Most-Favored-Nation or MFN tariffs, which are the baseline rates applied equally to WTO members unless superseded by a trade deal. The U.S. will determine these rates based on the trading partner’s commitments in a future reciprocal agreement.
Listeners should note, however, that the U.S. Judiciary is impacting tariff policy too. In August 2025, a U.S. Appeals Court found most of President Trump’s broad reciprocal tariffs unlawful. While the tariffs remain in effect pending a Supreme Court appeal, this legal backdrop adds uncertainty to U.S.-EU trade and tariffs, impacting negotiations and corporate planning for both sides.
Currently, the average U.S. tariff rate has jumped dramatically since January, climbing from 2.5% to nearly 19% as of August, and in some cases even higher. Trade policy sources highlight that some tariff proposals discussed by President Trump aimed for a baseline of 15–20% on European goods, though some of these hikes are still under negotiation or challenge.
There’s no shortage of friction on the digital front. Trump has explicitly warned the European Union over what he calls “discriminatory” antitrust fines against major U.S. tech firms, such as Google and Apple. Earlier this month, the EU ordered Google to pay €3.2 billion (about $3.5 billion) in an antitrust penalty for its ad tech business. Trump responded with threats of a new Section 301 investigation to nullify what he claims are unfair EU penalties on American technology and innovation. He also referenced notable past decisions, such as the 2024 Irish court ruling requiring Apple to pay over $14 billion in back taxes.
Listeners following the EU’s response will want to watch for countermeasures. As of July, the EU launched a public consultation on retaliatory duties if negotiations falter. Products under review include U.S. aircraft, cars, medical devices, IT equipment, and industrial machinery, amounting to €95 billion in annual exports. Possible EU export restrictions, including on metals and chemicals, are also under consideration.
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