Trump announces plans to impose 50% tariff on EU imports from June 1 over stalled trade negotiations 

In a post on his Truth Social platform on Friday, Trump criticized the EU for its trade barriers, VAT taxes, corporate penalties, non-monetary trade restrictions, monetary manipulations, and lawsuits against American companies.

“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” Trump declared.

Following Trump’s announcement, global stock markets reacted swiftly. S&P 500 futures dropped 1.5% ahead of the New York market open, while the Stoxx Europe 600 index fell 1.7%, reflecting investor concerns over escalating trade tensions.

The U.S. had previously imposed a sweeping tariff, including a 20% “reciprocal” tariff on most EU goods in April, but later halved the rate until July 8 to allow time for negotiations.

However, the 25% tariffs on steel, aluminum, and car parts remain in place, with similar measures expected for pharmaceuticals, semiconductors, and other goods.

Earlier in May, the United States and China reached a temporary trade agreement, announcing a 90-day reduction in tariffs on each other’s imports.

The agreement aims to ease trade hostilities, providing both nations with additional time to negotiate long-term trade solutions while reducing financial strain on businesses and consumers.

Trump’s 50% tariff proposal on EU imports raises concerns about potential retaliatory measures from the European Union, which could further disrupt global supply chains and increase costs for businesses and consumers.

As the U.S.-China trade agreement seeks to de-escalate tensions, Trump’s hardline stance on EU trade suggests a divergent approach, with uncertain consequences for international commerce.

Many observers remain cautious, waiting to see whether this 90-day tariff reduction translates into a more comprehensive trade resolution or merely stalls another escalation.