#TrumpTariffs On May 23, 2025, President Donald Trump announced plans to impose a 50% tariff on all European Union (EU) imports starting June 1, citing stalled trade negotiations and accusing the EU of unfair trade practices . Additionally, he threatened a 25% tariff on Apple products not manufactured in the U.S., aiming to pressure the company to shift production domestically .
The EU has authorized countermeasures, including up to 50% tariffs on a €21 billion package of goods, and is considering a broader €95 billion retaliation list . Financial markets reacted negatively, with indices in both the U.S. and Europe declining, particularly affecting exporters and economic-sensitive stocks .
Analysts project that these tariffs could reduce long-run U.S. GDP by about 6% and wages by 5%, with a middle-income household facing a $22,000 lifetime loss . The tariffs are expected to increase federal tax revenues by $157.4 billion in 2025, making them the largest tax hike since 1993 .
The United Kingdom, having exited the EU through Brexit, is not affected by the tariff and may benefit from increased trade opportunities with the U.S. .
These developments signal a significant escalation in global trade tensions, with potential widespread economic implications .