Trump says he is hitting EU with 50% tariff as trade talks are ‘going nowhere’ | Trump tariffs

Donald Trump has stated he’ll impose a 50% tariff on all EU imports to the US from 1 June after claiming commerce talks between the 2 buying and selling blocs had been “going nowhere”.

In a shock announcement, the US president posted on his Fact Social platform that his long-running battle to safe concessions from the EU had stalled.

He accused the EU of profiting from the US on commerce, saying: “Our discussions with them are going nowhere! Therefore I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”

Talking to reporters within the Oval Workplace, Trump claimed the EU had “taken advantage” of the US and claimed the brand new tariffs can be imposed until EU firms moved their operations to the US.

“It’s time that we play the game the way I know how to play the game,” stated Trump.

Inventory markets slumped in response to the information, the tech-heavy Nasdaq closed down 1% as Trump additionally signalled plans to impose tariffs on Apple, Samsung and different cellphone producers. The broader S&P 500 misplaced 0.68%. The STOXX Europe 600 index fell by 1.7%. In London the FTSE 100 closed down 0.2% after initially dropping as a lot as 1.5%. Germany’s automotive makers had been notably exhausting hit, with BMW down 3.7%, Volkswagen off 2.6% and Mercedes-Benz down 4%.

The US imposed a 20% “reciprocal” charge on most EU items on 2 April, however halved that charge every week later till 8 July to permit time for talks. It has retained 25% import taxes on metal, aluminium and automobile components and is threatening related motion on prescription drugs, semiconductors and different items.

“This is a major escalation of trade tensions,” stated Holger Schmieding, the chief 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.”

EU negotiators have been locked in conferences with White Home representatives since Trump’s so-called “liberation day” tariffs had been first introduced. Dozens of nations have been holding discussions to attempt to carry down their very own levies earlier than the 90-day pause elapses.

The White Home has relented on lots of its most onerous tariffs, together with reducing whole tariffs on Chinese language items from 145% to 30% after what Trump declared had been constructive talks with Beijing, which lowered its retaliatory border taxes from 125% to 10% in response.

Every week in the past the US president appeared to acknowledge that Washington lacked the power to barter offers with scores of nations without delay, saying the US would as an alternative ship letters to some buying and selling companions to unilaterally impose new tariff charges.

Perceptions of an easing again on a hardline method to commerce introduced a interval of calm to inventory markets, however Friday’s risk of a 50% levy on EU items, plus a separate risk made the identical day of 25% tariffs on iPhones made overseas, have introduced an finish to the peace.

The EU offered a recent commerce proposal to the US on Thursday. The supply included phased tariff cuts on non-sensitive items, plus cooperation on vitality, AI and digital infrastructure. The bloc was readying about $108bn in retaliatory tariffs if talks failed.

To sweeten the deal, EU officers had been additionally prepared to increase a 2020 tariff-free association on US lobster imports, according to the Financial Times. But it surely seems to have proved inadequate to steer the US president to signal a deal permitting solely his 10% common tariff to use to the EU, because it does the UK.