US President Donald Trump has threatened to impose a sweeping 50% tariff on all goods imported from the European Union, citing a breakdown in trade negotiations and what he called “unacceptable” trade practices by the bloc. The proposed tariff, set to begin on June 1, 2025, sent shockwaves through global financial markets and triggered immediate concern from European officials, reported CNN.
In a post on Truth Social on Friday morning, Trump accused the EU of employing unfair trade tactics, including “powerful Trade Barriers, VAT taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, and unjustified lawsuits against American companies.” He added that the U.S. runs a trade deficit of over $250 billion annually with the EU, which he deemed “totally unacceptable.”
“Our discussions with them are going nowhere,” Trump wrote. “Therefore, I am recommending a straight 50% tariff on the European Union, starting on June 1, 2025.”
The announcement marks a sharp escalation from the former president, who had earlier implemented a 20% “reciprocal” tariff in April before pausing it to allow room for negotiations. That pause is scheduled to expire on July 9, with no significant breakthrough in talks except a limited trade agreement with the United Kingdom.
The threat of new tariffs sent European stock markets into a tailspin. Germany’s DAX fell 2.6%, France’s CAC dropped 2.8%, and London’s FTSE slipped 1.3% by midday. U.S. stock futures also reacted negatively, with Dow futures falling over 600 points, or about 1.7%.
Olof Gill, spokesperson for the European Commission, declined to issue a formal statement but said a response may follow a scheduled call between EU Trade Commissioner Maroš Šefčovič and U.S. Trade Representative Jamieson Greer.
The proposed tariff, if implemented, could reignite a transatlantic trade war and significantly impact industries ranging from automobiles to agriculture, adding fresh uncertainty to an already volatile global economy.