Donald Trump has announced he will impose a 30% tariff on imports from the European Union from 1 August.
He has also imposed the tariff on Mexico, according to a post on his Truth Social account.
Announcing the move in separate letters on the account, the president said the US trade deficit was a national security threat.
In his letter to the EU, he wrote: “We have had years to discuss our trading relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, trade Deficits, engendered by your tariff, and non-Tariff, policies, and trade barriers.”
“Our relationship has been, unfortunately, far from reciprocal.”
In his letter to Mexico, Mr Trump said he did not think the country had done enough to stop the US from turning into a “narco-trafficking playground”.
The president of the European Commission, Ursula von der Leyen, said today that the EU could adopt “proportionate countermeasures” if the US proceeds with imposing the 30% tariff.
Ms von der Leyen, who heads the EU’s executive arm, said in a statement that the bloc remained ready “to continue working towards an agreement by Aug 1”.
“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she continued.
“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if
required.”
Ms von der Leyen has also said imposing tarrifs on EU exports would “disrupt essential transatlantic supply chains”.
On his so-called “liberation day” in April, Mr Trump unleashed tariffs on many of America’s trade partners. But since then he’s backed down in a spiralling tit-for-tat tariff face-off with China, and struck a deal with the UK.
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the latest version.
You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.
