US President Donald Trump has sent letters to the leaders of several nations that have failed to reach a new trade agreement, threatening to increase the reciprocal tariffs originally announced in April if an agreement is not reached by August 01.
The list of nations threatened with higher tariffs at the end of the summer now includes the EU, which could impact brands like Leica and Hasselblad, following similar announcements for Japan and several other countries last week.
Early last week, Trump used his social media platform Truth Social to publish letters written to more than 20 nations, putting an August 01 deadline on new trade agreements. That list includes Japan, with Trump warning Prime Minister Shigeru Ishiba that tariffs would increase from the temporary 10% pause to 25% in August if an agreement isn’t reached.
But on Saturday, as Trump continued publishing letters addressed to countries that hadn’t yet reached a new trade agreement, the US president threatened a 30% tariff on the European Union, adding to the list of nations looking at a potential US tariff increase in August. The letter notes that if the EU responds with counter tariffs, then the US would then increase the 30% by the same amount.
Germany, Portugal and Sweden are EU members with a role in camera production, with many Leicas originating in Germany and Portugal. Hasselblad originates from Sweden. OM System's European service center is in Portugal.
The threatened 30% tariff is up from the original 20% tariff announced in April, which was later paused at 10%. Last week, Trump extended that 10% pause through August 01.
While the letter threatened higher tariff rates, the nations could reach an agreement ahead of that deadline – some economists are predicting that a new trade agreement will be reached before then. EU trade commissioner Maroš Šefčovič said that anything above 30% practically “prohibits the trade.”
When the 90-day pause was originally announced, the Trump administration said it expected as many as 90 agreements before the end of the deadline, but instead had only preliminary agreements with the UK and Vietnam.
The list of countries threatened with higher tariffs in August includes several countries where cameras are manufactured. Beyond Japan and the EU, that list includes Thailand (36%) and Malaysia (25%).
Camera prices have already fluctuated under the tariffs originally announced in April. Leica increased prices on May 01 but, when tariffs between the US and China were paused at a rate lower than the original 145%, the price on cameras made in China like the Leica D-Lux 8 dropped as well. That suggests, if trade negotiations end up lowering rates, that perhaps prices may follow suit. Canon, Sony and Nikon have since increased prices on some gear.
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