EU Confident in Facing 10 Per Cent US Tariffs, but Fears Further Increases

European officials believe that the European Union can withstand a new 10 per cent tariff on exports to the United States, but they fear that these tariffs could increase significantly higher, according to a report by Politico. The United States Trade Representative’s office indicated on Tuesday that Washington intends to impose additional tariffs of 10 per cent and 12.5 per cent on goods from more than 60 countries which, according to the US, are not making sufficient efforts to combat the use of forced labour.

Politico reported on Wednesday that European officials stated privately that the EU could still survive a 10 per cent tariff. However, they are concerned that subsequent US trade investigations could lead to the imposition of much higher tariffs. One official stated that Washington’s 10 per cent tariff proposal is “more or less” acceptable, though the EU is still awaiting further details.

Canadian Prime Minister Mark Carney told reporters on Wednesday that such moves have been planned by the United States for several months. “It puts us in a position where, once again, we will still have the best trade deal compared to other US trading partners,” said Carney.

In 2025, US President Donald Trump imposed additional import tariffs on goods from all countries. However, the US Supreme Court ruled that Trump does not have the authority to do so, as trade-related decisions must be made exclusively by Congress. As a result of that ruling, the US federal budget is now required to refund approximately 159 billion US dollars collected from those import duties.