The European Union is “freaking out” about the possibility of Donald Trump returning to the White House in January 2025 after the former President announced his intention to reimplement a ten percent tariff on imported goods as he did on European steel and aluminium in 2018.
“It’s on everyone’s mind: what if the elections [in 2024] go the wrong way?” stated an anonymous EU trade diplomat, with an EU-based lawyer advising on trade admitting that EU officials and businesses are “frightened” about Trump’s re-election.
The 45th President floated the idea of a “universal baseline tariff” in a meeting with a number of his aides last month, suggesting it would create a “ring around the U.S. economy.” He later reiterated the plans in an interview, arguing:
“When companies come in and they dump their products in the United States, they should pay, automatically, let’s say a 10 percent tax… I do like the 10 percent for everybody.”
The Biden government initially suspended Trump’s tariffs in an effort to negotiate a compromise between the United States and the EU. However, the tariffs could be re-imposed within the next two months if the two cannot reach an agreement, meaning billions of dollars worth of tariffs may be placed on one another’s goods, including rum, vodka, and even denim jeans.
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