Washington/Brussels: US President Donald Trump dramatically intensified tensions with the European Union on Friday, announcing plans to impose a 50% tariff on all EU imports from June 1, claiming that trade negotiations were stalled and unproductive.
Writing on his Truth Social platform, Trump accused the EU of exploiting the United States for decades, pointing to what he described as an entrenched system of “powerful trade barriers, VAT taxes, excessive corporate penalties, monetary manipulation and unjust lawsuits” that had created an annual US trade deficit of over $250 billion. He insisted the bloc had been “very difficult to deal with,”, reports BBC.
“Our discussions with them are going nowhere!” Trump wrote. “Therefore, I am recommending a straight 50% tariff on the European Union, starting on 1 June 2025.”
Later, speaking to reporters in the Oval Office, the president reaffirmed his hardline stance, dismissing the idea of further negotiations.
“I’m not looking for a deal. We’ve set the deal – it’s at 50%. But there is no tariff if they build their plant here,” he said. Trump also claimed the EU “wants to make a deal very badly” but added, “They just don’t go about it right.”
The comments came just hours before US and EU officials were due to meet for further trade discussions, which now hang in the balance. The European Commission has maintained that it remains open to talks but is ready to respond if needed.
“EU–US trade is unmatched and must be guided by mutual respect, not threats,” said EU Trade Commissioner Maroš Šefčovič in a social media post. “We stand ready to defend our interests.”
German Foreign Minister Johann Wadephul expressed concern at the move, warning that punitive tariffs would damage both economies. “Such tariffs will not help anyone. They will only slow the economic development of both markets,” he said at a press conference, reiterating Germany’s support for continued negotiations, as per Bloomberg.
Irish Taoiseach Micheál Martin echoed the sentiment, saying the EU had been acting “in good faith” and cautioning that tariffs would be harmful to both sides. “Negotiations are the best and only sustainable way forward,” he said.
French Foreign Minister Laurent Saint-Martin also called for restraint, stating: “We are maintaining the same line: de-escalation, but we are ready to respond.”
US Treasury Secretary Scott Bessent claimed that divisions within the EU were hindering talks, and suggested that some member states were unaware of the terms being negotiated by Brussels. He expressed hope that Trump’s tariff threat would “light a fire under the EU”.
Trump also reignited his long-standing feud with Apple, threatening to slap a 25% import tax on iPhones not manufactured in the United States – a move that analysts widely dismissed as unrealistic. “The concept of Apple producing iPhones in the US is a fairy tale,” said Dan Ives of Wedbush Securities. Shares in Apple dropped 3% following the remarks.
Financial markets reacted sharply to Trump’s comments, with US and European indices slipping. The S&P 500 closed down 0.7%, while Germany’s DAX and France’s CAC 40 both fell by more than 1.5%. Companies with large transatlantic operations, including Deutsche Bank, BMW, SAP and LVMH, saw share prices decline.
The European Union is America’s largest trading partner, exporting over $600 billion in goods to the US annually while importing roughly $370 billion. Trump has repeatedly cited this imbalance as evidence of unfair treatment, particularly in sectors such as agriculture and automotive manufacturing.
The 50% tariff threat follows Trump’s earlier introduction of a baseline 10% tariff on imports, with steeper rates targeting countries running trade surpluses with the US. While that move prompted more than 75 countries to seek talks, Trump now appears to be hardening his approach, despite warnings from business leaders and economists.
Šefčovič said the European Commission continues to prefer negotiation, but “not at any cost”, confirming that plans are already in place for retaliatory tariffs worth more than $100 billion should the US follow through.
