Trump Escalates EU Trade War: 30% Tariffs Threaten Transatlantic Supply Chains and Global Economic Stability in 2026
24 December 2025

Trump Escalates EU Trade War: 30% Tariffs Threaten Transatlantic Supply Chains and Global Economic Stability in 2026

European Union Tariff News and Tracker

About
Welcome to European Union Tariff News and Tracker, where we break down the latest on transatlantic trade tensions. Listeners, as 2025 wraps up, President Trump's aggressive tariff strategy has put the European Union squarely in the crosshairs, reshaping global supply chains and sparking urgent negotiations.

Logistics Manager reports that in April, Trump launched his 'Liberation Day' tariffs, starting with a 10% rate on most imports effective April 5, but he delayed country-specific reciprocal rates until August. In letters to nations, he proposed a steep 30% tariff on EU goods—10% higher than first announced—aimed at reviving US manufacturing. European Commission President Ursula von der Leyen fired back, warning it would disrupt essential transatlantic supply chains.

The Yale Budget Lab confirms Trump's moves lifted the average US tariff rate to nearly 17% from under 3% at the end of 2024, generating about $30 billion monthly for the US Treasury, according to the Japan Times and Times of India. For the EU, this has fueled discord, with the euro's rise from $1.02 to $1.18 against the dollar by September adding pressure on European exports, as noted by AJOT.

Framework agreements have emerged, with the EU among partners like the UK and Japan securing pauses or carve-outs in exchange for US investments. Yet unresolved issues loom: Trump recently prayed for a favorable Supreme Court ruling on his tariff authority, per AOL, amid pushback from allies.

On the EU side, the Council decided December 12 to impose a temporary €3 customs duty on low-value B2C parcels of €150 or less starting July 1, 2026, per Mondaq, leveling the playing field against cheap imports.

These tariffs signal a volatile 2026, with the EU bracing for higher costs on autos, steel, and more. Stay tuned as we track every twist.

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