On May 23, U.S. President Donald Trump announced plans to impose a striking 50 percent tariff on imports from the European Union, setting the stage for a potential tit-for-tat trade war.
In a post on his social media platform, Truth Social, Trump expressed his frustration, claiming, “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.”
He further lamented that negotiations with the EU have stalled, leading to his decision to initiate the hefty tariff on June 1. Notably, he clarified that this tariff would not affect products manufactured within the United States.
The European Union, a bloc comprising 27 countries including economic heavyweights like Germany and France, is currently in discussions with the U.S. regarding trade terms. Polish Trade Minister Michal Baranowski commented on the situation, noting that while some negotiations are conducted in public, the substance of these discussions often remains elusive.
Trump first hinted at such tariffs back in January, asserting that the U.S. has long been at a disadvantage in trade, where other nations impose tariffs on American goods, but the U.S. has not reciprocated. He highlighted the issue of the value-added tax (VAT) imposed on U.S. products sold in Europe as a significant factor in this unfair trade landscape.
Previously, the U.S. had introduced a 20 percent tariff on EU goods, in addition to higher tariffs on steel and aluminum imports. However, in April, Trump paused these tariffs for 90 days to facilitate ongoing negotiations, a gesture that was mirrored by the EU’s own suspension of countermeasures against U.S. tariffs, aimed at fostering a more conducive negotiation environment.
EU officials have consistently opposed tariffs, arguing they are detrimental to economic growth. The temporary pause on tariffs will only have lasted 53 days if Trump’s new proposal takes effect on June 1.
EU Trade Chief Maros Sefcovic recently urged the U.S. to demonstrate a willingness to reach a balanced and fair agreement, asserting, “We do not feel weak. We do not feel under undue pressure to accept a deal that would not be fair for us.”
U.S. Treasury Secretary Scott Bessent indicated that countries like Switzerland and the UK have prioritized their trade deals with the U.S., leaving the EU seemingly lagging in the race for favorable trade terms.
Economist Holger Schmieding of Berenberg described Trump’s latest tariff announcement as a significant escalation of existing trade tensions, indicating that the specter of a trade war looms large on the horizon.
Reuters contributed to this report.
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