Gordon Sondland, who served as President Trump’s ambassador to the European Union, expressed worries about the increasing prices for Americans after news broke about new US-EU trade agreements. These agreements include a 15% tariff on goods imported from Europe.
During an interview with CNN’s Jessica Dean, Sondland addressed the potential impact of these tariffs, citing concerns that items like French perfume could see a 15% price hike.
He acknowledged that while consumers might initially face higher costs, he believes prices will eventually stabilize as competition in the market reemerges.
“Initially, at 15%, it’s likely consumers will feel the pinch, but I think the market will adjust,” he remarked. He added that the reduction in profit margins could help lower prices over time.
Sondland suggested that the tariff could generate significant revenue to help alleviate the annual deficit. “I think a 15% tariff could potentially raise around $450 billion for the US Treasury if all imports are subject to it, making a substantial impact on the deficit,” he stated.
He noted that much higher tariff rates, like 30% or 50%, would lead to a complete halt in trade, which wouldn’t be effective. But with a rate between 10% and 15%, he believes it is feasible.
On Sunday, President Trump and European Commission President Ursula von der Leyen unveiled the trade agreements, which impose a 15% tariff on European imports, including vehicles.
As part of the deal, the European Union has committed to purchasing $700 billion worth of energy from the United States and plans to increase its investment in other products by an additional $600 billion.
This agreement is a step down from the 30% tariffs Trump had previously considered, helping to avoid a potential trade war with one of the US’s largest trading partners.
