Trump Considers 10% Tariffs on EU, Discusses Potential Ban on TikTok and Chinese Electric Cars

Former President Donald Trump could impose a 10% universal tax on the European Union (EU) if he is re-elected, Bloomberg reported on the 6th (local time).

The media, citing an anonymous source, reported that the former president is considering introducing a “universal basic tariff” that raises the US tariff rate, which is on average around 3%, up to 10%, applying not only to China but also to the EU.

Also, a second Trump administration could potentially invoke Section 301 of the Trade Act against Europe. Section 301 of the Trade Act is a provision that allows for the investigation and retaliation against foreign unfair trade practices that harm US interests. During his tenure, President Trump imposed a 25% tariff through Section 301, citing China’s illegal subsidies.

Sources said that the invocation of Section 301 of the Trade Act would be a response to digital service taxes imposed by European countries on the digital companies operating in their countries. Former President Trump’s intention is to protect US Big Tech like Alphabet, Meta Platforms, Microsoft, Amazon.com, Apple, and Netflix.

Economist Stephen Moore, an unofficial economic advisor to former President Trump, said, “Former President Trump uses trade and tariffs in negotiations to make these countries act in accordance with US national interests,” referring to the way he used to make the North Atlantic Treaty Organization (NATO) allies increase their defense spending.

Additionally, former President Trump has reportedly discussed with his advisors measures such as bans on the use of the Chinese video platform TikTok in the U.S. and the sale of electric cars made in China or assembled in other countries like Europe or Mexico using Chinese parts.