President Donald Trump announced on Friday his recommendation to impose a 50% tariff on goods imported from the European Union, citing stalled trade negotiations and ongoing frustrations with the bloc’s trade practices. He declared that the proposed steep tariff would come into effect on June 1, 2025, emphasizing that no tariffs would apply to products manufactured in the United States.
Trump criticized the EU for its “formidable trade barriers, VAT taxes, absurd corporate penalties, non-monetary trade obstacles, currency manipulations, and unjust lawsuits against American companies,” which he claims have contributed to a U.S. trade deficit exceeding $250 billion annually. He expressed that discussions with the EU have reached an impasse, stating, “Our negotiations with them are going nowhere!”
The announcement followed earlier threats by Trump to impose at least a 25% tariff on Apple iPhones if the company does not move production to the U.S. The markets reacted swiftly, with European stock indices such as Germany’s DAX and France’s CAC dropping around 2%, London’s FTSE declining by 1.3%, and U.S. stock futures falling sharply, including a 600-point drop in Dow futures.
This new tariff proposal significantly raises the stakes compared to the 20% reciprocal tariffs introduced briefly in April, which were mostly suspended to allow for negotiations. The suspension is set to expire on July 9, and no substantial trade agreements with the EU have been reached since, aside from a deal with the United Kingdom.
The European Commission has yet to comment officially but is reportedly preparing retaliatory tariffs on over $100 billion worth of U.S. goods, including automobiles, alcoholic beverages, industrial products, and Boeing aircraft, if talks fail to progress. Discussions on these countermeasures are expected to continue until June 10.
This development marks a significant escalation in U.S.-EU trade tensions, with both sides bracing for potential economic repercussions as the June 1 deadline approaches.