The European Union expects to find out on Monday whether President Donald Trump will impose punishing tariffs on America’s largest trade partner in a move economists have warned would have repercussions for companies and consumers on both sides of the Atlantic.
Trump imposed a 20% import tax on all EU-made products in early April as part of a set of tariffs targeting countries with which the U.S. has a trade imbalance. Hours after the nation-specific duties took effect, he put them on hold until July 9 at a standard rate of 10% to quiet financial markets and allow time for negotiations.
Expressing displeasure with the EU’s stance in trade talks, however, Trump says he would increase the tariff rate for European exports to 50%, which could make everything—from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals—much more expensive in the U.S.
The EU’s executive commission, which handles trade issues for the bloc’s 27-member nations, says its leaders hope to strike a deal with the Trump administration. Without one, the EU says it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes.
