US President Donald Trump announced on May 23, 2025, that he is recommending a straight 50% tariff on goods imported from the European Union, set to take effect on June 1, 2025. Trump cited stalled trade negotiations and described the EU as “very difficult to deal with” on trade matters, accusing it of imposing formidable trade barriers, VAT taxes, corporate penalties, and monetary manipulations that have resulted in a significant trade deficit with the US.
Trump made the announcement via social media, stating:
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
He clarified that products manufactured in the United States would not be subject to the tariff. The proposed tariff would dramatically increase the current baseline US tariff on EU goods, which stands at around 10%, and follows earlier sector-specific tariffs on steel, aluminum, and automobiles.
The announcement triggered a sharp negative reaction in global markets:
- European stock markets fell, with the STOXX 600 index dropping by about 1.8%.
- US stock futures declined, and the euro weakened.
- Apple’s shares fell over 3% in premarket trading after Trump also threatened a 25% tariff on iPhones if Apple does not move production to the US.
Economists warn that such a steep tariff would significantly escalate trade tensions between the US and the EU, potentially prompting retaliatory measures and harming both economies. However, some analysts remain cautious about whether the tariff will actually be implemented, given Trump’s unpredictability and the complexity of trade negotiations.
The EU has yet to officially respond but has scheduled talks between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer to discuss the situation.
This move marks a serious intensification of the ongoing US-EU trade conflict, with implications for global trade and economic stability.
Sources: Reuters1, Punch2, NPR3, Nairametrics4, Euronews6, CNN7
