United States president Donald Trump has announced blanket tariffs on trade coming from the European Union of 30 per cent, in a move that sets back negotiations to avert an escalating trade war.

Negotiators from both sides have spent several intense weeks working on the broad strokes of an “agreement in principle”, aimed at stopping Mr Trump following through on threats to double import duties he has charged on European goods sold to the US.

Officials in the European Commission, who have been leading the tariff negotiations, had believed a deal was ready to be signed, pending the approval of Mr Trump.

In a letter to European Commission president Ursula von der Leyen, Mr Trump instead said he would raise import duties charged on goods sold into the US from the EU to 30 per cent, a significant increase on the blanket 10 per cent tariffs he introduced in April.

“Our relationship has been, unfortunately, far from Reciprocal. Starting on August 1, 2025, we will charge The European Union a Tariff of only 30% on EU products sent into the United States, separate from all Sectoral Tariffs,” he wrote.

The correspondence effectively blows up the negotiations to date between EU and US officials, to draw up a preliminary trade agreement.

In the letter, which was posted on his Truth Social social media platform, Mr Trump warned efforts to retaliate with EU counter-tariffs on US products would be met with higher rates in return.

“If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added on to the 30% that we charge,” the letter said.

“Please understand that the 30% number is far less than what is needed to eliminate the Trade Deficit disparity we have with the EU,” he wrote.

The letter, dated July 11th, said the US looks forward to working with the EU as a trading partner “for many years to come”.

Mr Trump took aim at EU regulations he views as barriers to US products, such as food safety rules that bar chlorine-washed chicken from the European market.

“If you wish to open your heretofore closed Trading Markets to the United States, and eliminate your Tariff, and Non-Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” he wrote.

Mr Trump also announced a 30 per cent tariff on Mexican goods, beginning on August 1st. Earlier this week, Mr Trump issued new tariff announcements for a number of countries, including Japan, South Korea, Canada and Brazil.

Senior EU officials had been bracing for a letter to land from Mr Trump, announcing new tariff rates.

At the start of this week the word from US counterparts was that the EU would probably not be getting a letter, and that a trade agreement was effectively on Mr Trump’s desk to sign.

Focus now turns to how the EU will respond and whether it might try to bring the Trump administration back to the negotiating table, or retaliate with its own levies on US products.

The commission, which sets the union’s trade policy, had largely finalised a package of EU counter-tariffs, in the event talks collapse without an agreement.

An initial batch of tariffs targeted €21 billion worth of US trade, hitting soybeans, oranges and steel. They had been put on ice while negotiations took place during Mr Trump’s first 90-day pause, on the higher rates of his “liberation day” tariffs.

The commission has drawn up a second package of tariffs on up to €95 billion worth of US products, targeting Boeing and the aviation sector, automobiles, bourbon, medical devices and agricultural produce.

It is understood the size of that second retaliatory package has been scaled back to impact around €70 billion worth of US trade, after national capitals successfully lobbied to remove some US products and industries from the hit-list.