Donald Trump has ignited a fresh wave of trade tensions with the European Union, recommending a sweeping 50% tariff on all EU imports beginning June 1.
The move, announced via the US President’s social media platform Truth Social, follows mounting frustration over stalled negotiations and signals a hardline stance on international trade.
Trump framed the EU as structurally exploitative of the U.S., claiming the bloc was “formed for the primary purpose of taking advantage” of American trade.
“I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!” Trump said.
Markets React Swiftly to Tariff Threat
Financial markets responded quickly to the news. U.S. stock futures dipped in early trading, and European equities fell by 2%. Adding to market unease, Trump threatened Apple earlier in the day with a separate 25% tariff if the company continues to manufacture iPhones abroad, CNBC reported.
The European Commission has declined to comment publicly on the new threats, but the bloc is expected to oppose any unilateral U.S. measures it deems inconsistent with World Trade Organization rules.
Key Officials Brace for Tough Negotiations
The proposed 50% tariff marks a dramatic escalation in Trump’s signature trade strategy. During his presidency, he frequently leveraged tariffs to force concessions from trading partners, notably in disputes with China, Canada, and the EU.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” he added.
“Their powerful Trade Barriers, VAT Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,” he shared.
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While it’s unclear how such a tariff would be implemented or whether it has backing from broader U.S. institutions, the announcement signals a return to aggressive trade posturing. If enacted, the duties could disrupt transatlantic supply chains and further strain diplomatic relations between Washington and Brussels.
“The EU is one of Trump’s least favorite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two,” opined Kathleen Brooks, the Research Director at XTB.
“EU companies are not the only ones that are selling off,” Brooks added. “Talk of tariffs has weighed on sentiment more broadly, with US stock index futures pointing to a large decline at the open later today.”