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May 24, 2025
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EU pushes back as Trump threatens tariffs

Donald Trump threatened to impose a sweeping 50% tariff on all European Union goods entering the United States.

Brussels has vowed to pursue a fair and respectful trade relationship with Washington after US President Donald Trump threatened to impose a sweeping 50% tariff on all European Union goods entering the United States.

In a statement following talks with senior American officials, EU Trade Commissioner Maroš Šefčovič reaffirmed the bloc’s commitment to finding a constructive solution, urging dialogue over escalation.

“The EU is fully engaged and committed to securing a deal that works for both sides,” Šefčovič said after speaking 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 response follows a fiery intervention from President Trump on Friday, when he expressed frustration at the pace of ongoing transatlantic trade talks. Taking to his Truth Social platform, he declared: “Our discussions with them [the EU] are going nowhere,” confirming that the 50% tariff plan would take effect on 1 June unless talks made “major progress.”

U.S. President Donald Trump speaks during the Conservative Political Action Conference (CPAC) at National Harbor in Maryland. (Photo by Aaron Schwartz/Xinhua)

“I’m not looking for a deal—we’ve set the deal,” Trump told reporters, before suggesting that major European investment in US manufacturing might persuade him to reconsider the timeline.

The EU remains one of Washington’s largest trading partners, exporting more than $600 billion in goods to the US last year while importing around $370 billion, according to US government figures. Trump has repeatedly criticised this imbalance, accusing the EU of enacting protectionist policies that disadvantage American companies—especially in the automotive and agricultural sectors.

European leaders have responded with warnings that further tariffs would damage both economies and risk undermining longstanding transatlantic ties. Irish Taoiseach Micheál Martin said that “negotiations are the best and only sustainable way forward,” while French Foreign Minister Laurent Saint-Martin called for de-escalation but confirmed that the EU was “ready to respond.”

Germany’s Economy Minister Katherina Reiche stressed the importance of finding a negotiated outcome. “We must do everything to ensure that the European Commission reaches a solution with the United States,” she said. Dutch Prime Minister Dick Schoof echoed that sentiment, saying he supported Brussels’ trade strategy, noting that “tariffs can go up and down in talks with the US.”

Markets reacted sharply to Trump’s announcement, with the S&P 500 slipping 0.7% and European indexes seeing steeper declines. Germany’s DAX and France’s CAC 40 both closed down more than 1.5%, amid investor fears of a renewed trade war between two of the world’s biggest economic blocs.

The latest threats come after Trump imposed a 20% tariff on most EU goods last month, though that rate was temporarily reduced to 10% until 8 July to allow for further negotiations. But with the president signalling little patience and casting doubt on the EU’s willingness to compromise, the path to resolution appears increasingly uncertain.

Analysts warn that a full-scale tariff war could cost billions in lost trade and damage already fragile supply chains, particularly in tech and manufacturing. Trump’s threats have also extended to companies like Apple, which he warned could face a 25% tariff—or more—on iPhones and other smartphones manufactured outside the US.

Despite the tension, EU officials remain hopeful that a diplomatic solution can still be reached. For now, Brussels is preparing both for further dialogue—and potential retaliation.

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