Trump Proposes 50% Tariff on the European Union Over Failed Negotiations

• Trump Proposes 50% Tariff on the European Union
• EU Faces Possible Trade Retaliation
• Current Negotiations Show No Clear Progress

Donald Trump is toughening his stance against the European Union.

The President of the United States has recommended a direct 50% tariff on European products starting June 1, 2025, arguing that current trade talks have yielded no significant progress.

Trump Escalates US Trade Position

What Trump Said About the Tariffs on Europe

The President made his statement on Truth Social this Friday:

“The European Union, created with the primary goal of taking advantage of the US in trade, has been very difficult to deal with. (…) Our talks with them are going nowhere! Therefore, I recommend a direct 50% tariff on the European Union starting June 1, 2025. No tariff will apply if the product is made in the United States.”

Trump argued that the EU’s “powerful trade barriers,” combined with factors such as VAT, “ridiculous” corporate sanctions, non-monetary barriers, currency manipulation, and unjustified lawsuits against American companies, have led to an annual trade deficit exceeding $250 billion.

“An absolutely unacceptable figure,” he stated.

Reactions and Context

Since returning to office, Trump has resumed his aggressive trade policies. Currently in place are 25% tariffs on steel, aluminum, automobiles, and certain auto parts, along with a baseline 10% tariff for all trading partners.

Trump’s latest threat raises that figure to 50%, far above the “reciprocal” 20% tariff briefly implemented in April before being paused for new negotiations. That pause will expire on July 9.

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The impact was immediate:

• Germany’s DAX dropped 2.6%
• France’s CAC fell 2.8%
• London’s FTSE declined 1.3%
• Dow Jones futures lost more than 600 points (1.7%)

What’s Next

The European Commission declined to comment directly, pending a call between Maroš Šefčovič and US Trade Representative Jamieson Greer.

Meanwhile, Brussels is considering countermeasures worth up to €100 billion should the talks collapse, targeting US agricultural and industrial products.

The future of US–EU trade relations hangs in the balance as both sides prepare for a potential tariff escalation.

With visible market consequences and a looming deadline, Trump’s confrontational tone may redefine the transatlantic economic balance.

Do you think this tariff will improve the US trade position, or will it hurt American consumers more?

SOURCE: EFE