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Donald Trump has toughened his stance in trade negotiations with the European Union, pushing for minimum tariffs of 15–20% on goods in any new deal with the bloc, Financial Times reported. The move marks a sharp departure from earlier discussions that centred around maintaining a baseline 10% tariff.
Trump has also dismissed a recent EU proposal to lower car tariffs, remaining firm on keeping the planned 25% levy on automotive imports. His administration last week sent similar letters to 23 other countries, including Canada, Japan and Brazil, threatening blanket tariffs ranging from 20% to 50% unless new agreements are reached by August 1.
The tariffs, which include separate levies of 50% on steel and aluminium and 25% on auto imports, have already begun generating significant monthly revenue for the US government. However, they are also straining diplomatic ties with long-standing allies.
Germany’s Chancellor Friedrich Merz expressed concern on Friday over Washington’s reluctance to accept differentiated treatment for specific sectors. “The European side supports this. The American side views it more critically,” he said.
A senior EU diplomat warned that if Trump proceeds with permanent reciprocal tariffs of 15–20%, it could force Brussels to retaliate. “We don’t want a trade war, but we don’t know if the US will leave us a choice,” the official said.
Trump’s renewed aggressive trade stance has begun generating tens of billions of dollars in monthly revenue for the US government but has also strained ties with some of its closest allies.