Trump has once again changed his mind on EU tariffs

«We’re not looking to make sneakers and T-shirts, and we want to make military equipment,» said the President of the United States this Sunday, explaining the reasons behind the country’s protectionist plans. Trump explained that the goal will be to create «great things», such as chips, computers, and tools supported by artificial intelligence. But the enormous tariffs the American president wants to impose on all foreign trade are more complex than he hoped: this Friday, he stated that he would recommend 50% tariffs on European goods starting June 1, moving up the operation that was supposed to take effect on July 9. However, two days later, on the phone with the President of the European Commission Ursula von der Leyen, he decided to grant Europe the ninety days that had been established in April. «We had a very nice call and I agreed to move it,» he commented shortly afterward in front of the American press. According to what von der Leyen stated on X after the call with Trump, Europe should now have the necessary time to strike a sustainable agreement with the United States in light of much steeper tariffs than those foreseen last April, when they were expected to amount to 20%.

Europe thus continues to receive mixed signals from the American presidency. Last Friday, Trump had decided to raise tariffs to 50% on all of Europe as he believed the negotiations were taking too long, while now, after speaking with the President of the European Commission, he has backtracked and decided to give the EU more time. Despite, as stated by Trump this Sunday, the president believing that the United States does not need an internal textile production, and therefore can continue to rely on foreign exports for the fashion sector, since he announced he would raise tariffs on European goods to 50%, the stocks of French luxury conglomerates LVMH and Hermès have dropped by 3% and 4%, along with those of Kering, Prada, and Burberry. For now, the EU is subject to 25% tariffs on U.S. exports of steel, aluminum, and automobiles, and so-called "reciprocal" tariffs of 10% on the rest of the goods. Should the tariff actually rise to 50% after the July 9 deadline, instead of 20% as established in April, the prices of luxury goods could skyrocket. The harsh tariffs Trump wants to impose on Europe appear to be due to an “unfair” trade relationship between states. According to the U.S. government, in 2024 the EU exported goods worth over 600 billion dollars to the United States, which imported only 370 billion dollars. Despite the weekend’s events shaking the relationship between the United States and Europe, the future of trade agreements between the two remains, unsurprisingly, uncertain.