The European Union’s trade chief said Monday that trade will be “heavily impacted” if President Trump follows through on his threat to impose a 30% on EU goods.
Trade Commissioner Maros Sefcovic told reporters in Brussels that the EU “regrets” Mr. Trump’s levy threat and thought negotiators had been making progress toward a trade deal with the U.S.
“We remain convinced that our trans-Atlantic relationship deserves a negotiated solution, one that builds the basis for a new stability and cooperation, and that is why we continue to engage with the United States administration,” he said.
Mr. Sefcovic said the EU will continue to work toward a pact before an Aug. 1 deadline because a 30% or 30%-plus tariff would effectively cut off transactions.
“It prohibits the trade,” he said. “It will be almost impossible to continue the trade.”
In a post Saturday on Truth Social, Mr. Trump said he was issuing letters to Mexico and the European Union — America’s biggest trading partner and the world’s largest trading bloc — announcing the 30% tariffs.
Kevin Hassett, director of the National Economic Council, said Mr. Trump is using the threat of enacting a 30% tariff on Aug. 1 to pressure countries to make more concessions and agree to more U.S.-friendly deals.
“The bottom line is he has seen some sketches of deals that have been negotiated with [Commerce Secretary] Howard Lutnick and the rest of the trade team, and the president thinks the deals need to be better and basically to put a line in the sand, he sent a letter out to these folks,” Mr. Hassett said Sunday on ABC’s “This Week.”
Mr. Trump’s letter also calls for Europe to drop its tariffs on American goods and says that any retaliatory tariff put on the U.S. will be added on top of the 30%.
The EU on Sunday offered an olive branch, announcing it would suspend the retaliatory tariffs on U.S. goods that were slated to kick off Monday in hopes of striking a trade deal with the Trump administration by the end of the month.
Mr. Sefcovic said as parties negotiate, the EU will “prepare for all outcomes,” including the possibility of retaliation.
“Including, if necessary, well-considered, proportionate countermeasures to restore the balance in our trans-Atlantic relationship,” he said.
He also suggested the EU would consider new partners to diversify its trade.
