Tariff war: Donald Trump proposes 50% tariff on EU goods, says trade talks ‘nowhere’

In a move that threatens to deepen transatlantic trade tensions, former President Donald Trump on May 23 announced he is recommending a sweeping 50% tariff on goods from the European Union. The tariff, set to take effect on June 1, comes amid what Trump described as stalled negotiations with EU officials.

Posting on Truth Social, Trump accused the bloc of leveraging a “rigged system” to gain unfair trade advantages over the United States — a claim that rattled global markets and set the stage for high-stakes diplomatic talks later in the day.

“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump wrote. “Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!”

The announcement came swiftly on the heels of another trade threat—this time aimed at Apple. Less than 30 minutes earlier, Trump warned that the tech giant could face a 25% tariff unless it shifts iPhone production to the United States.

The market response was immediate. U.S. stock futures fell sharply, and European markets dropped by 2%, underscoring investor unease about escalating trade barriers.

The proposed tariff escalation comes as U.S. Trade Representative Jamieson Greer prepares for a scheduled discussion with EU Trade Commissioner Maros Sefcovic. According to the Financial Times, Greer is expected to express dissatisfaction with Brussels’ latest proposals, arguing they fall short of U.S. expectations.

The European Commission, for now, has opted for restraint. In response to Trump’s statement, a spokesperson told Reuters that the EU would wait for the outcome of the 15:00 GMT call between Sefcovic and Greer before issuing any formal comments.