Trump threatens 50% tariffs on the EU starting in June 2025: Brussels wary of trade escalation

The news, spread through its Truth Social platform, arises in a context of failure of trade negotiations between both powers and has generated a immediate impact on financial markets.

Trump justified his decision with harsh accusations against the European bloc: “The European Union, which was formed with the primary objective of taking advantage of the United States in trade, has been very difficult to deal with. Its powerful trade barriers, VAT taxes, ridiculous sanctions on companies, non-monetary trade barriers, currency manipulations, unfair and unjustified lawsuits against American companies, among other things, have caused a trade deficit with the United States of more than $250.000 billion a year, a totally unacceptable figure.” The US President emphasized the lack of progress in the talks: “Our talks with them are leading nowhere! Therefore, I recommend a direct tariff of 50% on European Union, starting June 1, 2025.

This new threat from Donald Trump represents a significant escalation in the trade tensions that have marked his relationship with the European Union.

The reaction from Brussels has been cautious. European Commission, the body in charge of trade policy for the 27 member states, has chosen not to comment publicly until after a scheduled conversation between the European Commissioner for Trade, Maros Sefcovic, and the United States Trade Representative, Jamieson GreerOfficial sources in Brussels have indicated that they are waiting for "clarity regarding the tariff threat before issuing an official response."

Trump's announcement quickly resonated in the markets. Wall Street futures and major European stock markets fell, while the euro lost some of its gains and government bond yields fell. eurozone fell sharply. Holger Schmieding, chief economist at Berenberg, called the threat “a major escalation of trade tensions” and warned of potential damage to both the US and European economies.

This latest threat from Donald Trump represents a significant escalation of the trade tensions that have marked his relationship with the European Union. Brussels' cautious response, pending further details on the actual implementation of the measure, underscores the uncertainty and potential impact on global trade that this decision could generate.