A. M. US President Donald Trump has launched a new trade threat against the European Union (EU). This tuesday, he threatened to impose 35% tariffs if the bloc does not comply with its agreement to invest $600 billion in the US economy.
During an interview on CNBC, the president was questioned about the consequences the EU would face if it did not fulfill its part of the pact. Trump’s response was forceful: the EU27 “will then pay 35% tariffs”.
Trump described the agreed amount as a “gift” to his administration, with which it could invest in whatever it wanted. This agreement was reached at the end of july, with the aim of avoiding a trade war that threatened to impose general tariffs on European products.
The agreement, which will take effect on august 8, reduces the tariffs Trump had imposed on the EU from 30% to 15%. The pact also includes “zero tariffs” on several products and strategic European purchases of gas, oil, nuclear energy, and artificial intelligence chips worth US$750 billion.
In addition to the US$600 billion investment, the agreement also contemplates an increase in the purchase of military equipment from the US. The 15% tariff limit applies to most products, except those with tariffs above 15%.
This new shift in the trade relationship between the US and the EU highlights the tension that exists despite the recent agreement. Trump’s statements seek to pressure the European bloc to comply with the agreed terms, reaffirming his “America First” policy in the global economic arena.
