President Donald Trump announced on Friday that he is recommending a 50 percent tariff on all goods imported from the European Union starting June 1. This major escalation comes after months of trade talks that Trump said did not meet his expectations. The announcement on Truth Social claimed the EU has unfair trade practices and that the U.S. faces a large trade deficit with the bloc.
Trump’s statement pointed to excessive trade barriers, VAT taxes, fines on corporations, non-monetary trade restrictions, currency manipulation, and legal actions against American companies as reasons for the trade deficit, which he said exceeds $250 billion per year. He stated that the tariff would not apply to products made within the United States.
CNBC pointed out that this came less than half an hour after Trump threatened to impose tariffs of at least 25 percent on Apple products if the company did not move its manufacturing operations to the U.S. This aggressive approach is similar to past cases where Trump has used tariffs as leverage in trade disputes. However, it contrasts with his recent softer tone on trade talks with China and the United Kingdom, where he announced tentative agreements earlier.
Trump threatens tariffs over frustration in trade
These earlier developments eased market concerns as investors hoped to avoid the economic instability linked to Trump’s previous tariff policies. The sudden return to a protectionist stance has left many unsure about the administration’s broader trade strategy.
The markets reacted badly to Trump’s announcement. U.S. stock futures dropped sharply after the post on Truth Social. European stock markets also fell, declining by 2 percent. Republicans Against Trump on X pointed out that Trump never makes these threats to Russia but jumps at the chance to tariff other countries, making them ask, “Whose side is he on?”
The upcoming meeting between U.S. Trade Representative Jamieson Greer and European Trade Commissioner Maros Sefcovic, set for later that Friday, became even more important after Trump’s move. Reports indicate that Greer was ready to express dissatisfaction with the EU’s latest proposal in ongoing trade discussions, suggesting little progress even before Trump’s drastic decision.
The EU was the second-largest buyer of U.S. exports in 2022, purchasing nearly $351 billion worth of American goods. A 50 percent tariff would dramatically change this trade relationship and could lead to countermeasures from the EU. Treasury Secretary Scott Bessent, in a Friday morning interview, said he hoped the tariff announcement would push the EU to take negotiations more seriously.
He suggested that the administration believes the nine-day period before the tariff takes effect leaves room for a possible agreement. However, given the short timeframe and the confrontational tone of Trump’s statement, it is unclear whether a deal can be reached in time. The sudden and steep tariff increase adds further strain to the already tense U.S.-EU relationship. The effects of this decision go beyond just trade between the two and could have major consequences for the global economy.
Published: May 23, 2025 10:11 am