Increased tariffs imposed by the United States, initially announced some time ago, went into effect early Friday morning. The move, heralded by a post on former President Donald Trump’s Truth Social platform, signifies a substantial shift in trade policy.
The new tariffs apply to a wide range of imported goods, raising the base tariff rate to 10%. This results in an average effective tariff rate exceeding 17%, representing the highest level seen since 1935. Goods imported from the European Union are particularly affected, now subject to a 15% tariff rate.
The implementation follows a previously agreed-upon trade arrangement between the US and the EU. As part of this agreement, European Commission President Ursula von der Leyen pledged investments of $600 billion into the United States. However, discrepancies have arisen regarding the nature and definition of these investments.
Trump has recently indicated that the pledged investments constitute a “gift” suggesting the US should retain autonomy in determining investment priorities. The European Commission, conversely, has referenced expressions of interest from European companies as evidence of progress. The differing interpretations underscore potential friction points emerging from the trade deal.