Trump Fires Red Flag Over EU: 35% Tariffs Threatened If $600bn Promise Falls Through

Trump Discusses U.S. Market Outlook on CNBC

Financial Landscape Overview

Donald Trump appeared on CNBC to shed light on the present state of the U.S. financial markets, touching on key indicators and future expectations.

Highlights from the Interview

• Short-term market volatility remains a concern.
• Recent policy changes could influence investor behavior.
• Emphasis on maintaining confidence among market participants.

EU‑US Trade Deal and Investment Commitment

During the same segment, interviewers posed a question about Trump’s pledge regarding investment commitments under the EU‑US trade agreement. Trump explained the company’s plans to support the partnership and acknowledged the scrutiny from both sides.

Key Points on the Investment Pledge

• Commitment to invest in joint ventures within the EU market.
• Anticipated benefits include technology exchanges and job creation.
• Future steps involve aligning corporate strategy with trade regulations.

Overall, Trump’s remarks highlighted a blend of market optimism and an acknowledgment of the obligations tied to international trade agreements, emphasizing a balanced approach to both domestic and global economic interests.

US President Warns EU of 35% Tariffs if Investment Promise Unmet

Background of the Deal

On July 27, President Donald Trump and EU Commission President Ursula von der Leyen concluded a trade accord in Scotland, signalling renewed ties between the two economies.

EU’s Investment Commitment

The agreement includes a pledge for the European Union to funnel $600 billion into U.S. markets by the end of Trump’s second term, on top of the $100 billion already investment made by EU firms each year. This figure represents an intention rather than a binding mandate, as the Commission can only coordinate with private enterprises and not enforce spending.

Trump’s Response on CNBC

• When asked on Squawk Box about the enforceability of the investment stagger, Trump replied that the EU must follow through, or the agreed‑upon tariff floor of 35 % would be imposed.
• He cited the reason the 15 % tariff ceiling had been lowered: “If the EU fails to deliver, the higher tariffs become active.”
• He reiterated that the deal’s investment clause was a key factor in negotiated tariff reductions.

EU’s Current Status

The European Commission has postponed a set of trade counter‑measures aimed at goods worth €93 billion slated to activate on August 7. This pause reflects ongoing discussions on a formal statement that encapsulates the accord reached in Scotland.

Next Steps

• The EU has yet to comment publicly on the Trump‑issued threat.
• Both sides are negotiating the specifics of the investment pledge and the conditional tariff approach.