Trump’s 10% Tariff Hits Permanency—Brussels Sounds the Alarm

Trade walls just got taller. The EU’s warning shot confirms what markets feared: Trump’s 10% tariff isn’t a negotiating tactic—it’s the new normal.

Global supply chains now face a inflationary gut punch. Meanwhile, Wall Street analysts will somehow spin this as ’bullish for liquidity.’

Pressure to loosen regulations is coming from some EU capitals

Brussels is also preparing to offer regulatory changes. Officials plan to widen an ongoing drive to cut red tape for companies, presenting it as an extra benefit for US businesses. Diplomats said it was unclear whether Seibert meant to increase the scope of deregulation or present the existing measures. 

The leaders of France and Germany have urged the commission to repeal a directive that obliges big companies to track emissions and labour standards among their suppliers, a measure long criticised in Washington. 

A separate plan to restrict goods linked to deforested land may be relaxed for “low-risk” countries, including the United States.

Italian Prime Minister Giorgia Meloni, who has spoken publicly against any new tariffs, has become a key player in the debate. The nationalist leader had a phone call with Trump, with whom she has longstanding ties, and persuaded him to accept von der Leyen’s call last weekend. 

Rome still hoped that both sides would eliminate duties on all industrial goods and some farm products, but ambassadors were told that the White House showed no interest in that goal. Instead, officials say the EU could lower some import tariffs on its own.

American negotiators have also put down other demands on the table: the removal of digital taxes and value-added tax on certain items, and changes to food-safety rules to open the EU market to more US produce. 

Seibert stressed that the bloc must be ready to hit back if talks are not successful. During the current negotiations, the EU has paused a €21 billion package of tariffs of up to 50% on US exports such as maize, wheat, motorcycles, and clothing. These measures were initially drafted in response to Trump’s steel duties. 

The commission is now asking member states for views on an additional €95 billion list targeting Boeing aircraft, cars, bourbon whiskey, and other goods. 

Some governments argue that the White House’s stance could still be shifted. “It’s not politically feasible to settle for 10 per cent tariffs without taking any measures ourselves. Businesses and citizens would not accept it,” a second EU diplomat said.

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