President Donald Trump announced on Friday his intention to impose a 50% tariff on goods imported from the European Union. He accused the EU of blocking progress in trade talks and using policies that disadvantage U.S. businesses, contributing to a large trade deficit.
Trump shared his frustrations on Truth Social, pointing to high European taxes, trade barriers, and legal actions against American companies. He said these factors caused a trade deficit exceeding $250 billion annually, which he called unacceptable. The tariffs are scheduled to begin on June 1, 2025.
Later, during an Oval Office event, Trump confirmed he was not seeking a new deal with EU leaders and insisted the 50% tariff was the set policy. He suggested a possible delay if companies decide to build factories in the United States.
European Trade Commissioner Maroš Šefčovič responded by reaffirming the EU’s commitment to a balanced trade agreement. He emphasized the need for negotiations based on mutual respect and warned that the EU is prepared to defend its interests if necessary.
The announcement caused a drop in markets across Europe and the United States. Key European indexes such as STOXX 600, Germany’s DAX, France’s CAC, and London’s FTSE all fell significantly. The Dow Jones in the U.S. also opened lower by over 400 points.
U.S. Treasury Secretary Scott Bessent criticized the EU’s trade proposals as lacking clarity and strength compared to other countries. He noted that negotiations with China are expected to restart soon and highlighted progress in talks with Asian nations.
The 50% tariff represents a sharp increase from the 20% tariff that was briefly applied in April but paused to allow negotiations. That pause will end on July 9. Since then, only the United Kingdom has reached a trade deal with the United States.
Bessent confirmed ongoing negotiations with India and said 18 key trading partners are involved in talks. He said most countries, except the EU, are acting in good faith.
Trump continued to criticize European Value Added Taxes and digital service taxes, arguing that these policies unfairly target U.S. tech companies and worsen the trade imbalance. According to the U.S. Commerce Department, the trade deficit with the EU was $236 billion in 2023.
In response to the tariff threat, the European Commission proposed a retaliatory package worth $108 billion. This plan targets a wide range of agricultural and industrial products if talks with the U.S. fail.
EU Commission President Ursula von der Leyen said the EU has made fair offers and hopes for a deal but warned that all options remain on the table. Irish Prime Minister Micheál Martin called the tariff threat disappointing and cautioned it could harm both economies and disrupt global trade.
French Trade Minister Laurent Saint-Martin criticized the U.S. approach but said Europe prefers de-escalation while staying prepared to respond.
Trump also issued a warning that Apple could face a 25% tariff if it continues manufacturing iPhones overseas. This followed meetings involving Trump, Treasury Secretary Bessent, and Apple CEO Tim Cook. Apple recently announced plans to increase production in India, but Trump wants more manufacturing on U.S. soil.
The Treasury Secretary described talks with Apple as positive, though Trump’s tariff threat suggests increasing pressure on multinational companies.
This new trade stance marks a tougher approach by the administration as it seeks better terms with global partners, even at the risk of trade tensions with long-standing allies.