Staff Report
In a move likely to escalate transatlantic trade tensions, the United States announced it will raise tariffs on a wide range of European Union goods to 30% starting August 1. The measure, which significantly increases duties from the current average rate of around 5–10%, is expected to impact industries such as automobiles, food products, and luxury goods.
US officials cited what they called “long-standing unfair trade advantages” enjoyed by European manufacturers, particularly in sectors where the US claims there is heavy state support or subsidies.
The European Commission responded swiftly, stating that while it remains open to dialogue to avoid a full-blown trade conflict, it is also preparing countermeasures should negotiations fail. “Europe does not seek escalation, but we will defend our economic interests with resolve,” said EU Trade Commissioner Valdis Dombrovskis.
Analysts warn that the move could damage key supply chains and lead to rising consumer prices on both sides of the Atlantic. With global markets already sensitive due to political uncertainty and inflationary pressures, this latest development adds another layer of risk to the international trade landscape.
