Trump’s new taxes on Europe: between trade war and uncertainty

Translated by Martina Ravasi

A significant United States turning point has shocked international trade over the last few weeks. Indeed, President Donald Trump has announced a new increase in global customs taxes up to 15% with an immediate effect – including on European goods. This new increase is a consequence of the decision by the American Supreme Court which had judged previous generic taxes illegal. Consequently, the US Administration was forced to find a new juridical basis to keep taxes and increase them.

According to Trump, this measure is aimed to protect the American industrial sector from some trade activities considered unfair by lots of partner States. Indeed, the idea behind it is that many countries – including some European ones – have “robbed” the United States for decades. However, this decision quickly raised concern and caused critical reactions both in Europe and among American politicians and manufacturers.

How does the new tax system work?

The new Trump’s measure aims to increase import taxes by 15% from all countries. According to Section 122 of the 1974 Trade Act, this figure is considered the highest threshold where it’s possible to do without explicit approval from the US Congress. Although these tariffs are temporarily and valid for 150 days, they’re a further expansion compared to previous standard tax rates.

Trump's decision has been described as a reaction against the juridical rejection of previous taxes imposed through controversial legal tools. Nevertheless, institutional analysts say that it may be just the beginning of a wider protectionist trade policy.

Consequences for the European Union

The European Union is one of the main United States trade partners. Indeed, the US market is one of the most important destinations for European exports. However, the new tax system has quickly highlighted the fragilities and uncertainties that may affect the most exposed sectors. For instance, due to previous sectorial 50% taxes, steel and aluminum exportations to the US have already dropped, and the new tax tariffs may further jeopardize the competitiveness of the sector in key markets. Between June and December 2025, EU steel exportations to the US decreased by almost 30% due to previous tax tariffs, thus showing the concrete impact of these measures.

Additionally, the prospect of generalized tariffs makes the approval of the so-called “transatlantic trade agreement” more complicated. In July 2025, a mutual 15% tariff on European exports to the US was agreed in return for no tariffs on some American goods. This situation of normative instability has pushed some European MPs to suspend the agreement as long as the effects of the new taxes aren’t clear.

Political and industrial reactions

The EU answer was immediate and clear. It asked for clarifications and urged the US to respect already existing trade agreements, since “A deal is a deal”. Several European countries expressed their strong concern for the normative uncertainty that the new tariff system created and its potential impact on strategic sectors such as steel, automotive, and pharmaceutical ones.

Some countries, such as Ireland, would be worried about extremely concrete effects if tax tariffs affected high-value added products such as the pharmaceutical ones, since many pharmaceutical exports to the US are currently free of high taxes.

At the same time, some European industrial groups and entrepreneurial associations call for urgent negotiations that not only guarantee stability and predictability but also warn against potential retaliatory measures that may come from a prolonged trade war.

EU threatens of countermeasures aren’t excluded. In the past, Brussels had already adopted taxes on American products in response to the tariffs imposed by Washington.

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