In a move that significantly escalates the global trade war, U.S. President Donald Trump announced on Saturday a 30% tariff on all imports from the European Union and Mexico, effective August 1.

The decision was revealed through letters posted on the Truth Social platform, signaling the collapse of prolonged negotiations with two of America’s key trading partners.

This new round of tariffs comes just days after Trump imposed additional measures against other countries, including Japan, South Korea, Canada, and Brazil, as well as extremely high duties—up to 50%—on imported copper.

The tariffs targeting the EU are considered especially critical, given that the Union is the largest trade and investment partner of the United States. Brussels had invested considerable political and diplomatic capital into forging a broad trade agreement with the U.S. that would eliminate tariffs on industrial goods. However, months of tough and often fruitless negotiations with Washington yielded no results.

While the European Commission has yet to issue an official response, diplomatic sources indicate that countermeasures and a potential appeal to the World Trade Organization are under consideration. Trump, meanwhile, appears determined to maintain pressure until his trading partners accept what he calls “fair trade terms.”

The 30% tariffs are expected to heavily impact European exports to the U.S., particularly in sectors such as automotive, machinery, pharmaceuticals, and agriculture. For Germany and its large multinationals, the added cost poses a serious threat to the sustainability of their export operations.

Von der Leyen Does Not Rule Out Retaliation

European Commission President Ursula von der Leyen made it clear that the EU intends to defend its trade interests in light of the U.S. tariff announcement. Responding to Trump’s letter outlining the impending 30% duties on European exports, she stressed that such a move would significantly damage key transatlantic supply chains and negatively affect both the European and U.S. economies.

“A 30% tariff on EU exports would disrupt key transatlantic supply chains, to the detriment of businesses, consumers, and patients on both sides of the Atlantic,” she said.

Von der Leyen emphasized that the EU remains committed to dialogue and negotiations with the U.S. “Few economies in the world match the openness and commitment to fair trade practices of the European Union,” she stated, underscoring Brussels’ goal of reaching an agreement by August 1.

However, the Commission President left the door open for countermeasures, should they become necessary. “We will take all necessary steps to protect the EU’s interests, including the adoption of proportionate countermeasures if required,” she warned.

Meanwhile, she reiterated that the EU will continue strengthening its global trade relationships: “We are deepening our international partnerships, firmly grounded in the principles of rules-based global trade,” she concluded.