(Reuters) -Goods imported from both the European Union and Mexico will face a 30% U.S. tariff rate starting August 1, U.S. President Donald Trump said in letters posted to his social media platform on Saturday.
Following are reactions to the announcement:
URSULA VON DER LEYEN, PRESIDENT OF THE EUROPEAN COMMISSION
“Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.
“The EU has consistently prioritized a negotiated solution with the U.S., reflecting our commitment to dialogue, stability, and a constructive transatlantic partnership.
“We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
ITALIAN PRIME MINISTER GIORGIA MELONI’S OFFICE IN STATEMENT
“We trust in the goodwill of all players in the field in order to reach a fair agreement that can strengthen the West as a whole, given that – particularly in the current scenario – it would make no sense to trigger a trade clash between the two sides of the Atlantic.
“It is now crucial to remain focused on the negotiations, avoiding polarisations that would make reaching an agreement more complex.”
DUTCH PRIME MINISTER DICK SCHOOF
“The US announcement of 30% tariffs on goods imported from the European Union is concerning and not the way forward. The European Commission can count on our full support. As the EU we must remain united and resolute in pursuing an outcome with the United States that is mutually beneficial.”
WOLFGANG NIEDERMARK, SENIOR OFFICIAL IN GERMAN INDUSTRIAL LOBBY BDI, IN STATEMENT
“President Trump’s announcement is an alarm signal for industry on both sides of the Atlantic. A trade conflict between two economic areas as closely intertwined as the EU and the U.S. is damaging to economic recovery, innovative strength and ultimately trust in international cooperation.
“Tariffs as a means of exerting political pressure lead to higher costs, jeopardize jobs and undermine international competitiveness, both in Europe and in the U.S.
“BDI is calling on the German government, the European Commission and the U.S. administration to find solutions very quickly in an objective dialogue and to avoid an escalation.”
DAN O’BRIEN, CHIEF ECONOMIST, INSTITUTE OF INTERNATIONAL AND EUROPEAN AFFAIRS, IN POST ON X
“A 30% tariff on EU goods going to US would have a significant trade destruction effect. The threat to meet any EU tariff retaliation with a further and equal percentage point increase in the US tariff highly provocative. Chances of wider EU-US economic conflict have risen.”
KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO
“Today’s action has likely topped expectations.
“Although rising tariffs remain a bigger threat to the US itself, it is fair to expect the euro and Mexican peso to come under renewed selling pressure at tomorrow’s Asia open.
“At some point soon, it will become clear that Trump’s protectionist agenda has not been appropriately discounted in currencies, in asset prices, or in measures of volatility. A moment of capitulation is coming, in financial markets, or in the White House itself.”
(Compiled by EMEA Editing Desk)
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