EU Goods Threatened With 50% Tariff
At a time where many countries are mitigating the Reciprocal Tariff by negotiating with the United States, the EU may have its tariff rate raised by 50%. While there has been no official order from the White House, President Trump stated that this increased rate could begin in the next two weeks.
BACKGROUND
On Wednesday, April 2, 2025, President Trump signed an executive order imposing “reciprocal tariffs” that touch and concern just about every good imported into the United States. In the beginning, all imported articles were to be subject to a 10% ad valorem duty rate, additional to other duties and taxes. Later, the 10% ad valorem duty rate was scheduled to increase to rates individually calculated for each country. The country-specific rates came into effect at 12:01 a.m. on April 9, 2025.
These heightened rates were short lived, however. President Trump announced via Truth Social on April 9, 2025 that the country-specific tariff rates would be paused for 90 days, and that the 10% rate would apply instead. The President said:
…Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!
NEW DEVELOPMENTS
Today, April 23, 2025, also via Truth Social, the President appears to be reversing course in relation to the EU. He said (Emphasis Added):
The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with. Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!
This Truth Social post has not yet been accompanied by an executive order or other official action. However, it appears as if the Reciprocal Tariff pause granted to the EU could be eliminated in a matter of days. Moreover, the EU specific rate could be upwards of 50%. That being said, in the past U.S. trade partners like China have been swift to retaliate against additional tariffs. If the EU follows suit, negotiations could break down, and the tariff situation could grow more dire.
While the situation appears fluid at the moment, it would be best to prepare for the possibility that goods from the EU might be subject to an additional 50% rate of duty, starting on June 1, 2025. We will continue to monitor for updates.
CONCLUSION
As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions. If you seek strategic counsel and insight into how these changes could affect your operations, we invite you to contact us to schedule a consultation.