Trump proposes 50% tariffs on EU goods; European stocks continue to decline, Germany's DAX, French CAC 40, Euro Stoxx 50 and Spain's IBEX 35 indices down 2% intraday.

Trump proposes 50% tariffs on EU goods; European stocks continue to decline, Germany's DAX, French CAC 40, Euro Stoxx 50 and Spain's IBEX 35 indices down 2% intraday.

The European Union (EU) is open to extending a deal giving U.S. lobsters duty-free access as part of a broader package aimed at removing tariffs imposed by U.S. President Donald Trump, according to a report by the Financial Times [1]. The current regulation eliminating customs duties for fresh and frozen lobsters from the U.S. expires on July 31, but Bernd Lange, chair of the European parliament’s trade committee, has expressed support for an extension.

The EU faces 25% U.S. import tariffs on its steel, aluminum, and cars, with a 10% levy on almost all other goods that could rise to 20% after Trump’s 90-day pause expires on July 8. The European Commission has proposed countermeasures on up to 95 billion euros ($107.60 billion) of U.S. imports if tariff negotiations with Washington fail. The Commission has repeatedly stated its preference for a negotiated solution over tit-for-tat tariffs.

Meanwhile, European stocks continue to decline. The EURO STOXX 50 Index is down 0.55% to 5424.48, marking the largest one-day point and percentage decline since Wednesday, May 7, 2025 [3]. Germany's DAX, France's CAC 40, and Spain's IBEX 35 indices are also down 2% intraday. The decline comes as Trump has proposed a 50% tariff on EU goods, which has sparked concerns among investors.

Separately, the EU plans to impose a flat fee of €2 (~$2.2) on small parcels entering the bloc, primarily from China. This new tax will affect packages worth less than €150, which are no longer customs-free [2]. The revenue generated from this tax will cover the cost of extra customs checks and will be directed to the EU budget. Items sent to warehouses will be taxed at €0.50.

These developments highlight the ongoing trade tensions between the EU and the U.S., as well as the EU's efforts to manage its trade with China.

References:
[1] https://www.investing.com/news/economy-news/eu-open-to-extending-lobster-deal-in-package-on-trump-tariffs-ft-reports-4058656
[2] https://www.fibre2fashion.com/news/e-commerce-industry/eu-plans-2-fee-on-small-parcels-entering-bloc-through-e-com-websites-302821-newsdetails.htm
[3] https://www.morningstar.com/news/dow-jones/202505228233/euro-stoxx-50-index-ends-055-lower-at-542448-data-talk