Trump raises tariffs, Europe considers strengthening the single market. And China hits EU brandies

Washington ready to send letters to partner countries. Lagarde: ‘More European integration is needed.’ Meanwhile, Beijing imposes tariffs of up to 34.9% on European brandies

Washington 4 July 2025 – Global trade tensions flare up again. US President Donald Trump has announced the launch of a new tariff plan that involves sending letters to about ten countries a day to notify them of the application of tariffs on entry into the US market. ‘It’s much easier than negotiating 170 different agreements,’ the president told reporters, as reported by The Hill. The letters will indicate how much each country will have to pay to trade in the United States, ahead of the 9 July deadline, when the new measures will come into force.

‘Good deals can be made, but they are complicated,’ Trump explained. ‘Clear communication about how much will be paid will be much more effective and well received.’

In Europe, the response came from European Central Bank President Christine Lagarde, who in an interview with German radio called on the European Union to strengthen the single internal market by reducing bureaucratic barriers and harmonising regulations among member states. ‘The United States is an important partner, but we need to reorganise ourselves internally,’ she said, calling for greater integration to promote the free movement of goods, capital and people.

Meanwhile, in Asia, China has announced the introduction of anti-dumping duties of up to 34.9% on certain brandies imported from the European Union, particularly from France. According to reports in the Chinese media Global Times and Cn Wire, the duties will come into force tomorrow and will last for five years. Some European producers will be able to avoid the duties by agreeing to minimum sales prices, as required by Chinese law.

Beijing’s decision stems from an investigation launched after complaints of unfair competition were filed by local producers. The investigation found that European brandies such as Cognac and Armagnac were being sold below cost, damaging the Chinese sector. The aim of the measure is to protect the domestic market and restore fair competition.

The Chinese measure comes at an already tense time on the international trade front, as the Trump administration accelerates towards a protectionist strategy based on the “America First” principle. The combination of US tariffs, Chinese retaliation and slow EU regulation now risks fuelling new friction at an already delicate time for global markets.

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