World

Trump threatens to impose a 50% tariff on EU goods

May 26, 2025 United States

On Friday, US President Donald Trump used social media to threaten a 50% tariff on European Union (EU) imports from the 1st of June, reigniting fears of a trade war. After a weekend call, he agreed to delay it until the 9th of July

The 50% rate would exceed the 39% that Trump had promised to impose on the bloc on the 2^ndof April of far-reaching tariffs that he scaled back a week later.

While claiming that negotiations with the EU have been “very difficult”, he added: “Their powerful trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against Americans companies, and more, have led to a trade deficit with the US of more than 250,000,000 USD a year, a number which is totally unacceptable. Our discussions with them are going nowhere!”, he wrote.

Some hours later, Maroš Šefcovic, Commissioner for Trade and Economic Security at the European Commission, posted on X that he had engaged in discussions with US Secretary of Commerce, Howard Lutnick, and the US Trade Representative Jamieson Greer.

“The EU’s fully engaged, committed to securing a deal that works for both. EU remains ready to work in good faith”, he said, reiterating the EU's preference for negotiation over confrontation. “EU-US. trade is unmatched and must be guided by mutual respect, not threats”, he emphasised. The European Union is one of Washington’s most significant commercial partners and represents the world's largest trading bloc.

On the 25^th of May, Ursula von der Leyen, President of the European Commission, stated on X that she had a “good call” with the US president and that “Europe is ready to advance talks swiftly and decisively”. A good deal will require time until the 9th of July, when the 90-day pause period ends, she added. Donald Trump later confirmed to journalists that he had agreed.

A 25% tariff was also threatened by Trump on Friday against Apple if it does not start producing iPhones in the United States.

After weeks of de-escalation provided some respite in the tariff battle, the twin threats caused turmoil in global markets. As a result, major US stock indexes and European shares fell, the dollar weakened, and the price of gold rose.

Image Credits: eunews.it

European Union United States Economy Tariffs Trade War