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American Focus > Blog > Economy > Donald Trump ‘not looking for a deal’ as he threatens EU with 50% tariff
Economy

Donald Trump ‘not looking for a deal’ as he threatens EU with 50% tariff

Last updated: May 23, 2025 1:00 pm
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Donald Trump ‘not looking for a deal’ as he threatens EU with 50% tariff
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Trump’s Bold Tariff Threats Against the EU

In a surprising turn of events, Donald Trump recently announced plans to impose a 50 percent tariff on imports from the European Union starting next month. The US president took to Truth Social to express his frustration with what he deemed as unfair trade practices by the EU. Trump stated that negotiations for a new deal were not progressing as desired, leading him to recommend the hefty tariff.

These comments from Trump have sparked tensions between the US and the EU, just weeks after the US reached a trade agreement with China. The proposed tariff has raised concerns among investors and market analysts, leading to a drop in stock prices and the dollar.

The Impact of Trump’s Tariff Threats

If implemented, a 50 percent tariff on EU imports would have significant economic repercussions. German GDP, for example, could shrink by 1.7 percent over the next three years, according to experts at Capital Economics. The threat of new tariffs has also put pressure on European companies, with Trump suggesting a potential delay if they commit to moving manufacturing plants to the US.

Market Reaction and Uncertainty

Trump’s tariff threats have rattled global markets, with stocks falling and investors bracing for potential disruptions to the supply chain. The uncertainty surrounding trade policies has raised concerns about the possibility of further rate cuts by the US Federal Reserve to mitigate the impact on the economy.

See also  “Here, We Sell Local”: Collectivist or Tribal Protectionism

European Response and Trade Negotiations

European officials were caught off guard by Trump’s sudden tariff threats, following what seemed like positive discussions at the recent G7 finance ministers summit. The EU now faces a difficult choice between retaliating with counter-tariffs or making concessions to avoid escalating the trade dispute.

Looking Ahead

As the US and EU navigate these challenging trade negotiations, the global economy hangs in the balance. Stay informed with the latest developments by signing up for the White House Watch newsletter. Our team of experts will provide you with in-depth analysis and insights into the evolving trade landscape.

Don’t miss out on this valuable resource – sign up today for free access to exclusive content on Trump’s trade policies and their impact on the world stage.

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