Trump postponed tariffs on Mexico and Canada, but announced a 25% tax on goods from the EU

Global markets remain under pressure from uncertainty over the introduction of import tariffs on goods from Mexico and Canada into the US. At the same time, on February 26, during the first meeting of the Cabinet, Donald Trump announced that he would impose a 25% tariff on all European goods.

Trump's main statements:
"We have made a decision and will announce it soon. It will be 25%, and it will apply to cars and other products," the US president said.
"The European Union was created to cause problems for the United States, and they have done a great job of it," he added.

Despite tough statements, tariffs on Canada and Mexico, which were supposed to take effect on March 4, will likely be implemented on April 2. As Commerce Minister Howard Lutnick explained, this also depends on Canada and Mexico's actions to combat fentanyl.

Economic consequences

• The introduction of tariffs causes a fall in raw material prices and shares of American companies, which may suffer from mutual restrictions.
• In 2024, the US imported €584 billion worth of goods from the EU and exported €357 billion. Over the past decade, imports from the EU have increased by 44%.
• Total trade between the EU and the US in 2023 reached €1.6 trillion, equivalent to €4.4 billion in daily shipments.

Main goods in trade between the US and the EU

The US exports to the EU: oil and petroleum products, pharmaceuticals, natural gas, soybeans ($3 billion), almonds ($1.2 billion), pistachios ($689 million), whiskey ($533 million).
The EU has a 10% duty on car imports, which is four times higher than the US 2.5%.

The European Union's reaction
"The EU is the world's largest free market, which benefits the US," the European Commission said.
Brussels has warned that it will react harshly to US attempts to create artificial trade barriers.

⚠ How will this affect Ukraine?
Reciprocal tariffs between the EU and the US will not have a significant impact on the Ukrainian agricultural market. There may be a slight increase in demand for soybeans, but additional supply of soybeans and canola from Canada, which may lose the American market, will increase competition in the EU.