The Trump administration estimates the tariffs charged by the European Union to the United States at 39 percent, and cuts this figure by half to come up with the 20 percent, in what Trump labelled “kind reciprocal” tariffs.
The Trump administration took particular offense at what it views as the EU’s nontariff barriers, such as value-added tax and its tech regulations. It factored these into its calculations — although the Europeans flatly reject its view that either discriminate against American businesses.
In fact, over 70 percent of imports to the EU are duty-free. And, on a trade-weighted basis, EU tariffs average just 2.7 percent, according to the World Trade Organization.
Trump’s tariff offensive came as a slap in the face of the European Union, which sought to bring his administration to the negotiation table in the lead-up to Wednesday’s announcement. EU trade chief Maroš Šefčovič went to Washington twice to meet with his U.S. counterparts — to no avail.
The European Commission said earlier it would respond in one strike to Trump’s reciprocal tariffs and auto tariffs, in addition to its answer to U.S. steel and aluminum duties already in force. Commission President Ursula von der Leyen was expected to issue a first reaction in the early hours of Thursday.
The new “reciprocal” tariffs will not be stacked on top of the sectoral tariffs that Trump has already announced for autos, steel and aluminum, and that are expected for lumber, copper, pharmaceuticals, semiconductors and potentially critical minerals, White House officials said.
(Additional reporting by Giovanna Faggionato. This story has been updated.)