Trump’s 30% tariff on Europe would effectively knock out transatlantic trade, says EU trade chief

The European Union has warned that its trade with the United States could be effectively wiped out if Washington makes good on its threat to slap a 30% tariff on goods imported from the bloc.

The European Union has warned that its trade with the United States could be effectively wiped out if Washington makes good on its threat to slap a 30% tariff on goods imported from the bloc. A tariff of “30%, or anything above 30%… has more or less the same effect. So, practically it prohibits the trade,” Maroš Šefčovič, the EU’s trade commissioner, said as he arrived ahead of an EU ministerial meeting in Brussels on Monday. Šefčovič said it will “be almost impossible” for the bloc to continue its current level of trade with America if that new tariff rate is implemented on August 1 – the date stipulated by US President Donald Trump in his letter to the EU on Saturday. “If (the tariff) stays 30 (percent) plus, simply trading as we know it will not continue, with huge negative effects on both sides of the Atlantic,” he added. “I will definitely do everything I can to prevent this super-negative scenario.” The EU-US trade relationship is mighty. According to the European Council, EU-US bilateral trade in goods and services was worth €1.68 trillion ($1.96 trillion) last year. Together, the partners represent nearly 30% of global goods and services trade, per the Council. But Trump has repeatedly rebuked the EU for what he sees as unfair trading practices, saying in April that the 27-nation bloc was “formed to screw” America. He has pointed to EU tariffs on US goods as well as several “non-tariff barriers” such as taxes on digital services to support that view.