The European Union has firmly responded to threats from former US President Donald Trump, who proposed a 50 percent tariff on all goods from the EU. The EU’s top trade official, Maros Sefcovic, stated that the bloc is committed to a fair and mutually beneficial trade agreement with the United States. Following talks with US officials, Sefcovic emphasized that the EU remains open to constructive dialogue but will not hesitate to defend its interests if threatened.
Trump Stands Firm on Tariffs as EU Urges Negotiation to Avoid Economic Fallout
Donald Trump made it clear that he is not aiming for a new trade agreement with the EU but rather enforcing a predetermined tariff policy. In a post on his Truth Social platform, Trump said talks with the EU had stalled, prompting his recommendation of a 50 percent tariff starting June 1. Speaking from the Oval Office, he added that while a deal was not his objective, he might reconsider the timeline if more European companies increased their investments in the US.
EU Pushes Back as Trump Threatens 50% Tariff, Raising Fears of Global Trade WarEuropean leaders expressed serious concern over the potential economic damage of the proposed tariffs. German economy minister Katherina Reiche stressed the need for a negotiated solution, while French foreign minister Laurent Saint-Martin affirmed the EU’s preference for de-escalation, albeit with readiness to retaliate if necessary. The consensus among EU leaders is that punitive tariffs could harm both economies and disrupt long-standing transatlantic trade relations.
Tariff Threats Could Deepen Trade Rift and Trigger Global Economic Market Turmoil
If enacted, the 50 percent tariff would place EU exports at a greater disadvantage than those from China, whose tariffs were recently reduced to foster better negotiations with the US. This move could significantly impact the hundreds of billions in goods the EU exports to the US each year. The Trump administration had earlier imposed a 20 percent tariff on EU goods, which was temporarily reduced to 10 percent to allow further talks—a grace period that may now be cut short.
Trump also targeted Apple, threatening a 25 percent import tax on all iPhones not manufactured in the US. His aggressive stance on trade has sparked anxiety in global markets, leading to declines in both US and European stock indices. The S&P 500 fell by about 0.8 percent, while the pan-European STOXX 600 dropped 1.2 percent, reflecting investor concerns about an escalating trade conflict between two of the world’s largest economies.
