Back to today’s briefing

Story perspectives

Trump's 30% Tariff Sparks $120 Billion Trade War

7/19/2025

40 8

Center

Trump Sparks Tariff War

President Trump is set to ignite trade tensions by imposing a hefty 30% tariff on the EU and Mexico starting August 1. In response, the EU is gearing up to retaliate, aiming at over $120 billion in U.S. exports. As negotiations hang in the balance, the stakes rise, threatening to drive up consumer prices and disrupt vital supply chains in aviation and agriculture.

Right

Trump's Tariff Threat

President Trump's proposed 30% tariffs on EU imports, set to begin August 1, put over 6,000 Italian companies at risk, particularly small businesses that export more than €11 billion to the U.S. This move could slice Italy's GDP by 0.5% and jeopardize 150,000 jobs, igniting fears of retaliatory actions from the EU.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs on over 20,000 goods, prompting retaliatory measures from trading partners and exacerbating the Great Depression. Today, President Trump's proposed 30% tariffs could threaten over 150,000 jobs in Italy and lead to a 0.5% GDP decline, echoing the historical consequences of protectionist policies that destabilized global trade relations.

1 of 3

Trump Sparks Tariff War

President Trump is set to ignite trade tensions by imposing a hefty 30% tariff on the EU and Mexico starting August 1. In response, the EU is gearing up to retaliate, aiming at over $120 billion in U.S. exports. As negotiations hang in the balance, the stakes rise, threatening to drive up consumer prices and disrupt vital supply chains in aviation and agriculture.

1 / 3