US-EU Trade Tensions Escalate: Trump Administration Raises Tariffs to 15-20% Targeting European Imports
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US-EU Trade Tensions Escalate: Trump Administration Raises Tariffs to 15-20% Targeting European Imports
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President Donald Trump’s administration has again placed tariffs at the center of its trade strategy. According to the Trade Compliance Resource Hub, President Trump announced in July his intent to raise the baseline reciprocal tariff rate to between 15 and 20 percent for key trading partners, including the European Union. Several of these measures took effect on August 1 and now apply a 15 percent or higher rate to many EU-origin goods entering the US. Additionally, Sullivan & Cromwell’s updated tariff tracker corroborates that automobiles and auto parts from the EU face a 15 percent US tariff, up sharply from preexisting rates. These automobile tariffs are part of Section 232 trade actions and potentially subject to further increases depending on ongoing negotiations.
In response, the European Union has prepared its own set of countermeasures. The EU’s Implementing Regulation 2025/1564 authorizes tariffs ranging from 4.4 percent up to 30 percent on selected US goods. Notably, alcohol products could be hit by tariffs as high as 200 percent if threatened measures go ahead. Other sectors targeted for possible duties include aircraft, medical devices, IT equipment, and industrial machinery, collectively accounting for around €95 billion in US exports to Europe. Conversely, the EU is reviewing restrictions on exporting scrap metals and chemicals to the US—covering €4.5 billion in European exports—pending the outcome of formal consultations and negotiations.
Listeners should also be aware of new mechanisms announced by the US Commerce Department for reviewing requests to expand Section 232 tariffs to derivative aluminum and steel products. The Bureau of Industry and Security now accepts requests in three annual windows, with results published after a 14-day comment period and finalized within 60 days. Proposed changes could subject new EU-made industrial goods to additional US tariffs under this process.
Since May, the EU has been seeking input on potential trade countermeasures. As reported by the Trade Compliance Resource Hub, these options may be activated if ongoing US-EU negotiations do not yield a resolution, putting entire sectors such as automotive, electronics, and industrial supplies on notice for heightened duties and restrictions.
To summarize, here are the key rates and headlines:
- US baseline reciprocal tariff rate on EU-origin goods: 15–20 percent, effective as of August 2025.
- US tariff on automobiles and parts from the EU: 15 percent, with possible further increases.
- EU countermeasures: 4.4–30 percent tariffs on various US goods, up to 200 percent on selected alcohol products if implemented.
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