Overview

• Trump defended a provisional deal that imposes a 15% tariff cap on most EU imports but misrepresented its terms during a CNBC interview.
• He falsely claimed the EU had committed $600 billion for his unrestricted use despite the bloc’s inability to make such an agreement.
• He threatened to increase tariffs on EU goods to 35% if he deems Europe noncompliant with the preliminary framework.
• Analysts estimate the 15% tariff will cut EU exports to the U.S. by roughly one-third, reducing them from just under 3% of EU GDP to about 2%.
• Pending court rulings could declare many of Trump’s tariff actions illegal and require refunds of duties already collected.