Trump: Not pursuing deal with EU after 50% tariff announcement

Trump: Not pursuing deal with EU after 50% tariff announcement

President Donald Trump has announced plans to impose a 50% tariff on imports from the European Union (EU) starting June 1, 2025, signaling a potential end to ongoing trade negotiations. This move comes as a surprise to many, given the recent de-escalation in U.S.-China trade tensions [1].

The announcement was made via Trump's Truth Social platform, where he criticized the EU for various trade practices, including trade barriers, VAT taxes, corporate penalties, and non-monetary trade restrictions. Trump stated that the discussions with the EU were going nowhere, leading to his recommendation of a 50% tariff [1].

Market reaction to the news was swift and negative. Global stock markets reacted with significant drops. The S&P 500 futures fell by 1.5% ahead of the New York market open, while the Stoxx Europe 600 index dropped by 1.7% [1]. The potential tariffs also had an immediate impact on specific sectors, with Apple shares opening over 2% lower due to the threat of a 25% tariff on iPhones made outside the U.S. [2].

The EU has not yet issued a formal response to the tariff threat, but analysts expect the bloc to prepare retaliatory measures if the talks collapse. The EU had earlier warned of counter-tariffs worth nearly $108 billion on American products, should the negotiations fail [2].

Trump's focus on the U.S. trade deficit with the EU, which stood at around $236 billion last year, underscores his grievances against the bloc's trade practices [2]. Despite these tensions, the U.S. and China recently reached a temporary trade agreement, reducing tariffs on each other's imports by 90% [1]. This move aims to ease trade hostilities and provide more time for negotiations.

The 50% tariff proposal on EU imports raises concerns about potential retaliatory measures, further disrupting global supply chains and increasing costs for businesses and consumers. The divergent approach from the U.S.-China trade agreement suggests uncertain consequences for international commerce.

References:
[1] https://nairametrics.com/2025/05/23/trump-announces-plans-to-impose-50-tariff-on-eu-imports-from-june-1-over-stalled-trade-negotiations/
[2] https://www.tradingview.com/news/financemagnates:a9a4742f9094b:0-s-p-500-dax-crypto-sink-as-as-trump-slaps-50-tariff-threat-on-eu-targets-iphones/