President Trump threatens 50% tariffs on EU as his trade war intensifies
On Friday, U.S. President Donald Trump threatened to impose a 50% tariff on all imports from the European Union.
In an unexpected statement posted on his Truth Social platform, Trump said his prolonged efforts to obtain trade concessions from the EU had reached an impasse.
He accused the EU of exploiting the United States in trade relations, 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.
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On April 2, the U.S. implemented a 20% “reciprocal” tariff on most European Union goods, but reduced the rate by half a week later, extending the lower rate until July 8 to allow room for negotiations. However, it has maintained 25% import duties on steel, aluminum, and auto parts, and is considering extending similar tariffs to pharmaceuticals, semiconductors, and other products.
“This is a major escalation of trade tensions,” said Holger Schmieding, the chief economist at Berenberg, on Friday.“
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With Trump, you never know, but this would be a major escalation. The EU would have to react, and it is something that would really hurt the US and European economy.
“I would hope that this would light a fire under the EU,” said U.S. Treasury Secretary Scott Bessent. “The 90-day pause on the April 2 tariffs was based on countries or trade blocs coming to us and negotiating in good faith,” Bessent told Fox News. He added that the EU’s proposals “have not been of the same quality” as those submitted by other trading partners.
EU negotiators have been engaged in ongoing talks with White House officials since the announcement of Trump’s so-called “Liberation Day” tariffs. Meanwhile, dozens of countries have been negotiating in an effort to reduce their own tariffs before the 90-day suspension period expires.
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