President Donald Trump has sharply escalated trade tensions with the European Union by threatening to impose a 50% tariff on European imports starting June 1. In a post on his social media platform, Trump claimed that the EU was formed primarily to take advantage of the United States on trade and that their trade barriers, taxes, and other policies have led to an unacceptable trade deficit of more than $250 billion a year. U.S. Treasury Secretary Scott Bessent expressed hope that Trump’s tariff threat would renew negotiations with the EU, which he said have been sluggish due to the EU’s collective action problem of representing 27 countries.
Trump’s initial tariffs on April 2 included a blanket 10% tariff on nations doing business with the U.S. and an additional 20% reciprocal tariff on the EU. European Commission President Ursula von der Leyen called Trump’s move “a blow to the world economy” and vowed that the EU would issue countermeasures. Maroš Šefčovič, Commissioner for Trade and Economic Security at the European Commission, affirmed the EU’s commitment to negotiating in good faith but also underscored the bloc’s readiness to defend its interests.
Trump escalates EU trade tensions
Europe’s political and business leaders have reacted to the news, preparing for potential impacts. Volvo Cars CEO Hakan Samuelsson warned that the tariffs would limit the company’s ability to sell certain vehicles in the U.S. Irish Taoiseach Micheál Martin found Trump’s announcement “enormously disappointing,” while German Foreign Minister Johann Wadephul echoed that such tariffs would harm economic development in both markets.
The EU is one of Washington’s top commercial partners, and Trump’s tariff threat follows years of highlighting his dissatisfaction with U.S.-EU trade relations. During his first term, Trump imposed tariffs on steel and aluminum imports from the EU, nearly triggering a trade war. Outside of the EU, Trump has had success with other trade deals, notably with the United Kingdom.
As the tariff deadline approaches, the international community remains watchful, with both sides voicing a mixture of hope for a negotiated solution and readiness for a trade fight.
