Trade War: EU warns 30% tariff on EU goods could shut down trade

A 30% tariff threatened by U.S. President Donald Trump on EU goods could effectively shut down trade, warns EU Trade Minister Maros Sefcovic.

Transcript

00:00A 30% tariff threatened by US President Donald Trump on EU goods could effectively shut down trade,

00:07says EU Trade Minister Maros Sefcovic.

00:10The warning follows Trump's announcement that the US will impose a 30% tariff on imports

00:15from the European Union and Mexico starting August 1.

00:19So it's practically, it prohibits the trade.

00:24So if you're talking about 30% or 30% plus, there will be a huge impact on trade.

00:30It will be almost impossible to continue the trading as we are used in a transatlantic relationship.

00:36And if you look at the impact this would have,

00:38so I have to say the transatlantic supply chains would be heavily affected on both sides of Atlantic.

00:45Sefcovic said both sides are working toward a mutually beneficial trade deal despite rising tensions.

00:51Trump revealed the new tariffs and letters to EU Commission President Ursula von der Leyen

00:56and Mexico's President Claudia Scheinbaum, which were posted on his true social account on Saturday.

01:02He added that if the EU or Mexico retaliates, the US would match their hike by adding it on top of the 30%.

01:10The EU responded by pausing its countermeasures against the United States until early August to prepare its options.