Trump’s Misleading Justification for Higher Tariffs on Imports of EU Goods

The United States and the European Union have reached a preliminary trade deal to avoid a 30% U.S. tariff on imported goods from the EU that President Donald Trump threatened would go into effect on Aug. 1. Trump had argued that higher tariffs were needed because EU tariffs and nontariff policies “cause the large and unsustainable trade deficits” between the U.S. and the EU, but economists disputed that statement.

EU tariffs were already generally low, economists told us, and other economic factors – rather than specific trade policies or regulations – contribute more to the yearslong U.S.-EU trade imbalance.

Under the new agreement, the U.S. will impose a 15% tariff on most imports from the 27 EU nations, Trump said on July 27.