Trump threatens EU with 50 percent tariff from June 1

U.S. President Donald Trump on Friday threatened the European Union with a 50 percent tariff on goods starting June 1.

“The European Union, which was formed with the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” he wrote in a post on social media.

“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50 percent Tariff on the European Union, starting on June 1, 2025.”

Trump’s ultimatum drastically shortened the timeline for doing a deal to save the €1.6 trillion transatlantic trade relationship: He originally imposed a 20 percent “reciprocal” tariff on most goods from the EU on April 2, only to slash it to 10 percent a week later and leave 90 days to hammer out an accord before the higher rate kicks back in.

European stock markets turned red on the news. The DAX index, made up of 40 of the largest German companies, fell 2.2 percent, while France’s CAC 40 slid 2.7 percent. Gold, a traditional safe asset, gained 2.1 percent. The price of Brent crude oil, an indicator of expected future economic activity, also fell 1.1 percent.

The fresh threat came hours before a call between EU Trade Commissioner Maroš Šefčovič and U.S. Trade Representative Jamieson Greer to seek a basis for negotiation to head off a full-scale trade war.

The call takes place just days after Brussels responded to the U.S. administration with a newly tweaked list of concessions it is willing to offer, as first reported by POLITICO.

The Financial Times reported earlier on Friday, however, that Greer was expected to reject the EU’s proposals, demanding unilateral concessions instead of mutually reducing tariffs.

The clash exposes fundamental differences between how the U.S. and EU think about trade, with Trump the deal maker colliding with the bloc’s process-driven approach.

“Trump’s demands appear to reflect deep U.S. frustration with the EU’s professional, calm and bureaucratic approach to trade negotiations — clashing with Trump’s willingness to quickly ink sexy-looking deals even if they mean very little in practice,” said Agathe Demarais at the European Council on Foreign Relations.

“There is no clarity around U.S. trade goals, making negotiations almost impossible for Europe,” added Demarais. “EU negotiators are left pondering what American demands really are.”

Light a fire

Speaking after Trump’s latest broadside, U.S. Treasury Secretary Scott Bessent said he hoped it would “light a fire under the EU,” which he faulted for showing less commitment to talks than Asian countries and Britain, which has already sealed a trade deal with the U.S.

“The president believes that the EU proposals have not been of the same quality that we have seen from our other important trading partners,” Bessent told Fox News in an interview.

Trump takes particular offense at the EU’s regulation of Big Tech and value-added taxes by member countries, which he views as nontariff barriers that discriminate against U.S. businesses.

Before Bessent chided the EU for failing to negotiate in good faith, the European Commission insisted its proposal was serious and constructive.

“We’ve sent them what we think is an excellent, detailed, mutually beneficial proposal,” said Commission spokesperson Olof Gill, standing by the EU’s approach in its talks with Washington.

The new document aims at boosting purchases in strategic sectors, such as energy, as well as developing cooperation on 5G and 6G mobile networks. It would also ramp up strategic cooperation in sensitive sectors that have undergone trade investigations resulting in U.S. tariffs, such as steel and aluminum, semiconductors and cars.

The EU offer also includes more imports of nonsensitive agricultural goods. 

The recent exchange of letters sparked hope that talks between Brussels and Washington could finally make substantive progress after weeks of mounting frustration over a lack of engagement from the Trump administration.

Šefčovič hopes to meet with Greer in Paris in early June. The EU trade chief paid at least three publicly disclosed visits to Washington since Trump took office in January.

This story is being updated. Carlo Martuscelli contributed reporting.