Trump Raises Tariff Stakes: Targets 15%-20% on EU Goods

US President Donald Trump has intensified his trade stance on Friday, July 18, 2025, pushing for a minimum tariff of 15% to 20% on all European Union goods, according to sources briefed on the negotiations. As trade talks heat up, the question looms—can this escalate further, or will a compromise emerge?

New Tariff Demands Test EU Resolve

Trump’s tougher position aims to challenge the European Union’s limits, moving beyond the earlier 10% baseline tariff proposal after weeks of discussions. Insiders indicate his unwillingness to accept the EU’s recent offer to reduce car tariffs, preferring the planned 25% duty on the sector. A US official suggested a reciprocal rate above 10%, even with a potential agreement, signaling a hardline approach.

Market Implications in Focus

The proposed increase could strain transatlantic trade ties, affecting the US Dollar’s strength and Eurozone markets. Trump’s strategy seeks to exert economic pressure, testing the EU’s readiness to yield amid ongoing trade disputes. The Dollar, a leading global currency handling over 88% of forex turnover, may shift based on the outcome.

Negotiation Dynamics

Sources point to Trump’s reliance on aggressive trade tactics to secure concessions. The EU’s response will be crucial, with car tariffs and broader duties central to the talks. This escalation follows a trend of tariff threats, keeping markets on alert.

What’s Next for Trade?

The tariff push could bolster the Dollar if unresolved, but an EU counterproposal might ease tensions. Markets teeter—will this spark a trade war, or will diplomacy prevail?