Trump says he’s hitting EU with 50% tariff as business talks are ‘going nowhere’

Donald Trump has mentioned he’ll impose a 50% tariff on all EU imports to the United States from 1 June after pronouncing business talks between the 2 buying and selling blocs had been “going nowhere”.

In a wonder announcement, the United States president posted on his Truth Social platform that his long-running combat to safe concessions from the EU had stalled.

He accused the EU of benefiting from the United States on business, pronouncing: “Our discussions with them are going nowhere! Therefore I am recommending a straight 50% Tariff on the European Union, starting on 1 June 2025.”

Stock markets slumped in keeping with the put up, with S&P 500 down by means of 1% and the tech-heavy Nasdaq 1.3% on opening. The STOXX Europe 600 index fell by means of 1.7%.

The US imposed a 20% “reciprocal” fee on maximum EU items on 2 April, however halved that fee every week later till 8 July to permit time for talks. It has retained 25% import taxes on metal, aluminium and car portions and is threatening equivalent motion on prescribed drugs, semiconductors and different items.

“This is a major escalation of trade tensions,” mentioned Holger Schmieding, the manager economist at Berenberg, on Friday. “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,” mentioned the United States 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 instructed Fox News. He mentioned the EU’s proposals “have not been of the same quality” as the ones from different buying and selling companions.

EU negotiators had been locked in conferences with White House representatives since Trump’s “liberation day” price lists had been first introduced. Dozens of countries had been conserving discussions to check out to carry down their very own levies earlier than the 90-day pause elapses.

The White House has relented on lots of its maximum exhausting price lists, together with decreasing general price lists on Chinese items from 145% to 30% after what Trump declared had been positive talks with Beijing, which reduced its retaliatory border taxes from 125% to 10% in reaction.

Every week in the past the United States president looked as if it would recognize that Washington lacked the facility to barter offers with rankings of nations without delay, pronouncing the United States would as an alternative ship letters to a couple buying and selling companions to unilaterally impose new tariff charges.

Perceptions of an easing again on a hardline solution to business introduced a duration of calm to inventory markets, however Friday’s danger of a 50% levy on EU items, plus a separate danger made the similar day of 25% price lists on iPhones made out of the country, have introduced an finish to the peace.

The EU offered a recent business proposal to the United States on Thursday. The be offering incorporated phased tariff cuts on non-sensitive items, plus cooperation on power, AI and virtual infrastructure. The bloc was once readying about $108bn in retaliatory price lists if talks fail.

To sweeten the deal, EU officers had been additionally prepared to increase a 2020 tariff-free association on US lobster imports, consistent with the Financial Times. But it seems that to have proved inadequate to influence the United States president to signal a deal permitting best his 10% common tariff to use to the EU, because it does the United Kingdom.