EU warns Trade with US could collapse under Trump's 30% tariff threat

 The European Union has issued a stark warning: its trade relationship with the United States could be effectively "wiped out" if Washington implements a threatened 30% tariff on goods imported from the bloc. Maro efovi, the EUs trade commissioner, stated upon his arrival at an EU ministerial meeting in Brussels on Monday that "30%, or anything above 30%... has more or less the same effect. So, practically it prohibits the trade. efovi cautioned that it would "be almost impossible" for the EU to maintain its current level of trade with America if the new tariff rate takes effect on August 1 the date stipulated by U.S. President Donald Trump in his letter to the EU on Saturday. "If (the tariff) stays 30 (percent) plus, simply trading as we know it will not continue, with huge negative effects on both sides of the Atlantic, he added. "I will definitely do everything I can to prevent this super-negative scenario. Following the meeting, efovi reiterated that the EU's preferred outcome is a negotiated deal with Washington and announced plans to speak with his U.S. counterparts late Monday. The EU-U.S. trade relationship is substantial. According to the European Council, bilateral trade in goods and services between the EU and U.S. was valued at 1.68 trillion ($1.96 trillion) last year. Together, the partners account for nearly 30% of global goods and services trade. However, Trump has repeatedly criticized the EU for what he perceives as unfair trading practices. In April, he controversially claimed the 27-nation bloc was "formed to screw" America, citing EU tariffs on U.S. goods and various "non-tariff barriers" like digital services taxes to support his view.Since re-taking office in January, Trump has increased and threatened to increase tariffs on countries worldwide. His stated goals are to eliminate the U.S. trade deficit, bring manufacturing jobs back to America, and compel foreign nations to concede on key disputes. On Monday, Trump asserted that America has given countries a "free ride" for many years. "The United States of America has been ripped off on TRADE (and MILITARY!), by friend and foe, alike, for DECADES, he wrote on his Truth Social platform. It has come at a cost of TRILLIONS OF DOLLARS, and it is just not sustainable any longer - And never was! For months, EU trade officials have been negotiating with their U.S. counterparts to avert Trumps tariffs or mitigate their impact. When the U.S. president threatened in May to raise his so-called "reciprocal" levy on EU goods from 20% to 50%, the bloc accelerated talks. efovi reiterated his belief on Monday that a deal had been "very close" before Trump's latest tariff threat. He noted that the bloc is demonstrating "enormous" levels of patience and creativity to secure an agreement. During the press conference, efovi emphasized that the EU would not have spent three months "drafting (a trade) agreement in principle and going through 1,700 tariff lines, discussing details from agriculture to car parts, if it believed those efforts could be thwarted by a single letter. U.S. National Economic Council Director Kevin Hassett stated on Monday that trade talks with the EU, Canada, and Mexico were "underway still." "I think that the president has set a deadline so that everybody gets the clarity that you all crave by the beginning of August, Hassett told reporters at the White House. On Sunday, the EU announced it would delay the implementation of planned countermeasures on 21 billion ($25 billion) worth of U.S. exports from Monday until early August, allowing more time for negotiations. These countermeasures are in retaliation for the 25% tariff Washington imposed on all steel and aluminum imports. efovi further disclosed during Mondays press conference that the European Commission, the blocs executive arm, has shared a proposal with member states for a new round of countermeasures, targeting 72 billion ($84 billion) worth of U.S. goods imports. Lars Lkke Rasmussen, Denmarks foreign minister, stressed that the bloc desires a fair deal but must also be prepared to retaliate. "If you want peace, you have to prepare for war, and I think thats where we are. So, of course, we shouldnt impose countermeasures (at) this stage, but we should prepare to be ready to use all the tool in the toolbox, Rasmussen said before the meeting of EU trade ministers on Monday. European stocks declined on Monday in the first day of trading since Trump issued his new tariff threat over the weekend. The Stoxx Europe 600, the regions benchmark index, was trading 0.3% lower by late afternoon CET. The post EU warns Trade with US could collapse under Trump's 30% tariff threat appeared first on Linda Ikeji Blog.