Brussels/Washington – The European Union has responded sharply to U.S. President Donald Trump’s threat to impose a sweeping 50% tariff on all EU goods, warning that future trade relations must be built on "mutual respect, not threats."
President Trump, expressing dissatisfaction with the pace of negotiations over a new trade agreement, announced that the punitive tariffs would take effect from June 1. In a post on his social media platform, Truth Social, Trump wrote: “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.”
Claiming an annual trade deficit of $250 billion with the EU, Trump added: “Our discussions with [the EU] are going nowhere.” He clarified that the tariffs would not apply to goods manufactured within the U.S. and later told reporters: “I’m not looking for a deal – we’ve set the deal.” However, he also hinted that a major European investment in the U.S. might prompt a delay in implementing the tariffs.
In response, EU Trade Commissioner Maroš Šefčovič issued a firm statement following a call with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. Posting on X (formerly Twitter), Šefčovič said: “The EU’s fully engaged, committed to securing a deal that works for both. The European Commission remains ready to work in good faith. EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests.”
Transatlantic Trade Tensions Rise
The European Union is one of the United States’ largest trading partners, exporting over $600 billion in goods to the U.S. last year, while importing approximately $370 billion worth, according to U.S. government data.
While the U.S. imposed a 20% “reciprocal” tariff on most EU goods starting April 2, that rate was later halved temporarily to facilitate ongoing discussions. However, several tariffs remain in place, including 25% duties on steel, aluminum, and vehicle parts, with threats of extending them to other strategic sectors such as pharmaceuticals and semiconductors.
Adding to market volatility, Trump suggested during a press briefing that the U.S. may impose a 25% levy on all Apple and Samsung phones sold domestically by the end of June. The Associated Press reported a negative market reaction, with both U.S. and European stock indexes falling in the wake of the announcement.
European Leaders React
European leaders voiced alarm over the escalating trade rhetoric. French Trade Minister Laurent Saint-Martin expressed disappointment, posting on X: “We are maintaining the same line: de-escalation, but we are ready to respond.”
Italian Foreign Minister Antonio Tajani echoed the sentiment, telling Ansa that the goal remained “zero-for-zero tariffs.”
Speaking in The Hague, Dutch Prime Minister Dick Schoof noted that Brussels is likely to view Trump’s move as a negotiation tactic. “We have seen before that tariffs can go up and down in talks with the US,” he said, affirming the EU’s support for its unified strategy.
Irish Taoiseach Micheál Martin described Trump’s proposal as “extremely disappointing,” warning that such tariffs would damage both economies. “Tariffs at the level suggested would not only push prices up, they would grievously damage one of the world’s most dynamic and significant trading relationships, as well as disrupting wider global trade,” Martin said in a statement on X. “We do not need to go down this road. Negotiations are the best and only sustainable way forward.”
EU Prepares for Countermeasures
German MEP Bernd Lange, chair of the European Parliament’s trade committee, signaled that Brussels is ready to retaliate if negotiations fail. “We will not allow ourselves to be pressured and will objectively attempt to begin negotiations next week,” Lange told Die Welt. “If the negotiations are unsuccessful, the European Union is strong enough to implement countermeasures, such as counter-tariffs, to offset the economic damage.”
As the world’s largest economic partnership teeters on the edge of a renewed trade conflict, Brussels and Washington face a critical juncture. Whether the coming weeks deliver constructive dialogue or further escalation may define the trajectory of transatlantic relations well into the next decade.
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