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EU Prepares Retaliation Amid Trump's 30% Tariff Threat

7/18/2025

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Summary

Story summary

The EU faces pressure to wield its anti-coercion trade tool in response to President Trump's looming 30% tariffs on imports, set for August 1. With France leading the charge, EU leaders advocate for retaliatory actions, such as taxing US tech giants. This escalating trade war threatens to inflate prices for consumers on both sides of the ocean.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs on over 20,000 imports, prompting retaliatory measures from countries like France and contributing to a 66% decline in global trade during the Great Depression. As the EU considers responses to President Trump's proposed 30% tariffs, the historical impact of protectionist policies on economies and consumer prices remains a significant concern.

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Story summary

The EU faces pressure to wield its anti-coercion trade tool in response to President Trump's looming 30% tariffs on imports, set for August 1. With France leading the charge, EU leaders advocate for retaliatory actions, such as taxing US tech giants. This escalating trade war threatens to inflate prices for consumers on both sides of the ocean.

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