Trump’s Issue With the E.U. as He Threatens 50% Tariff

In a sharp escalation of trade negotiations with the European Union (E.U.), Trump took to social media on Friday and announced that he is “recommending a straight 50% tariff on the European Union, starting on June 1, 2025.”

“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 claimed. “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!”

As he has said elsewhere, Trump went on to add: “There is no tariff if the product is built or manufactured in the United States.”

U.S. Treasury Secretary Scott Bessent said on Fox News that he hopes Trump’s tariff threat renews negotiations with the E.U., which he maintains have been moving at a slower pace compared to others.

“I would hope this would light a fire under the E.U,” he said. “The E.U. has a collective action problem here. It’s 27 countries but they’re being represented by this one group in Brussels. Some of the feedback I’ve been getting is that the underlying countries don’t even know what the E.U. is negotiating on their behalf.”

Trump’s initial April 2 “Liberation Day” tariffs included a blanket 10% tariff on nations doing business with the U.S., plus additional “reciprocal” tariffs for some. The E.U. was hit with a 20% reciprocal tariff.

In response, Ursula von der Leyen, president of the European Commission, the E.U.’s executive arm, issued a strong statement, calling the move “a blow to the world economy,” and vowing that the E.U. would issue countermeasures.

“We are in this together. If you take on one of us, you take on all of us. Europe stands together for our…