Tensions between the European Union and the United States escalated on Friday after former President Donald Trump threatened to impose a 50% tariff on all EU goods entering the US, prompting a firm response from European leaders and trade officials.
EU Trade Commissioner Maros Sefcovic emphasised that the 27-nation bloc remains committed to reaching a fair and balanced trade agreement with the US. “The EU is fully engaged, committed to securing a deal that works for both,” Sefcovic said after a call with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. “EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests.”
The remarks follow Trump’s latest post on his Truth Social platform, where he expressed frustration over the slow pace of EU-US trade talks. “Our discussions with them are going nowhere,” Trump wrote. “I’m not looking for a deal — we’ve set the deal.”
Speaking to reporters later, Trump said the proposed 50% tariffs would be implemented on June 1 but hinted he could reconsider if a major European company made a “big investment” in the US. He also reiterated that products made within the US would be exempt from the duties.
The EU, which exported over $600 billion worth of goods to the US last year and imported $370 billion, is one of America’s largest trading partners. European leaders quickly pushed back against Trump’s aggressive stance.
Irish Prime Minister Micheál Martin warned that “negotiations are the best and only sustainable way forward,” while France’s Foreign Minister Laurent Saint-Martin said the bloc was prepared to respond if necessary. “We are maintaining the same line: de-escalation, but we are ready to respond,” he said.
Germany’s Economy Minister Katherina Reiche urged a diplomatic solution, stating, “We must do everything to ensure that the European Commission reaches a negotiated solution with the United States.” Dutch Prime Minister Dick Schoof added that trade talks with the US have historically seen tariffs fluctuate and that the EU must remain united.
Trump has long criticized the EU for what he describes as an uneven trade relationship, pointing to a persistent trade deficit. He has targeted European auto imports and agricultural policy, arguing that EU regulations unfairly disadvantage US firms.
He also threatened Apple this week, saying he would impose a 25% import tax on iPhones not made in the US, later expanding that threat to include all smartphones.
Financial markets reacted sharply to the renewed trade tensions. The S&P 500 closed down 0.7%, while Germany’s DAX and France’s CAC 40 each dropped more than 1.5%.
The EU and US had been negotiating under a temporary reprieve, after Trump reduced a previously announced 20% tariff on EU goods to 10% last month, setting a July 8 deadline for further talks.
With just weeks to go, the prospect of a full-scale trade conflict now looms, as both sides weigh economic priorities against political pressure.
Chioma Kalu
Follow us on:
