By Aurélie Pugnet
(EurActiv) — Renewed trade belligerence from US President Donald Trump, who threatened 50% tariffs on EU-produced goods starting next week in Friday evening remarks from the White House, doused hopes in Europe of reaching an arrangement.
“I’m not looking for a deal,” the US president told reporters in the Oval Office. Earlier in the day, Trump took to social media to make clear that the tariffs would hit the European Union from 1 June.
EU leaders have spent weeks trying to negotiate with Washington to avoid higher tariffs, mirroring agreements struck by the United Kingdom and China, while also threatening retaliation if Trump sticks with his threats.Trump on Friday instead urged European manufacturers to relocate to the US. Although the president has later backed away from threats on several occasions, he suggested that there’s little chance to avoid the stiff tarrifs.
“We’ve set the deal – it’s at 50%,” Trump said. “But again, there’s no tariff if they build their plant here.”
Brussels feeling the heat?
But even though Trump appeared to slam the door on further talks, US Treasury Secretary Scott Bessent promptly went on television later on Friday night to say that the latest threats should “light a fire under the EU” to work out a deal.
Bessent, speaking on Fox News, accused the EU of being the only US trade partner that has been negotiating in bad faith.
“The EU proposals have not been of the same quality that we’ve seen from our other important trading partners,” Bessent said, after the US reported being in talks with India and Asian countries to strike bilateral trade deals.
After a Friday night call with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, the EU Trade Commissioner Maros Sefcovic said that “the EU’s fully engaged, committed to securing a deal that works for both”.
In response to earlier US tariffs threats, the EU unveiled possible retaliatory tariffs on up to €116 billion worth of American exports, including on cars and aircraft.
“We stand ready to defend our interests,” Sefcovic said on Friday.
Escalating levies of EU goods
EU exporters to the US currently face a 25% tariff on cars, steel and aluminium, as well as a 10% blanket levy. Trump’s so-called “reciprocal tariffs” – which remain however suspended until July – could potentially add another 10% import tax on EU products.
The European Union has been high on Trump’s target list in his trade policy, as he vowed to reduce the US trade deficit with the EU. Trump has said the deficit with the EU is worth more than $250 billion a year, and he’s repeatedly accused Europeans of ripping off the US.
According to the European Commission, which oversees EU trade policy, the EU runs a total trade surplus in goods and services of around €50 billion.
In remarks to Bloomberg, an unnamed EU official said US demands have been unrealistic.
The EU has repeatedly suggested the possibility of buying more US energy and weapons exports. But Brussels has also refused to weaken laws impacting US-based social media platforms or loosen strict trade rules for agrifood imports.
Tentative Europeans
Trump’s latest tariffs threats drew only a few high-level reactions in the EU on Saturday.
Over the past few months, EU leaders and ministers have been cautious not to ignite a more public feud with Trump or risk his wrath. Most European leaders have let the Commission do much of the talking during the back-and-forth over Trump’s trade threats.
German Economy Minister Katherina Reiche on Saturday stressed that “we must do everything to ensure” the European Commission and the US find a deal.
Dutch Prime Minister Dick Shoof, meanwhile, struck a hopeful tone: “We have seen before that tariffs can go up and down in talks with the US”.
Nikolaus J. Kurmayer and Thomas Moller-Nielsen contributed to this report.