U.S. President Donald Trump has announced that a flat 50% tariff on all imports from the European Union will take effect on June 1, 2025. In a statement on his Truth Social platform, Trump justified the drastic move by citing what he considers to be an unfair trade imbalance that harms the American economy.
Trump accused the EU of imposing high trade barriers, value-added taxes, corporate penalties, and legal action against U.S. companies. These measures, he claimed, have resulted in an annual trade deficit of over $250 billion. The U.S. Commerce Department estimates the deficit at around $236 billion.
“Their extreme trade barriers, VAT taxes, absurd penalties on our companies – all of this has led to an unacceptable deficit,” Trump wrote. “Our talks with the EU are going nowhere.”
At a White House event, Trump doubled down: “I’m not looking for a deal,” he said. “The deal is: 50%.” He made clear he has no interest in new negotiations with the EU. He added that an exception could be made if European firms invest in the U.S.: “If someone wants to build a plant here, I can talk about a little delay.”
Trump’s announcement drew sharp criticism across Europe. EU Trade Commissioner Maroš Šefčovič said after talks with U.S. officials that any trade agreement must be based on mutual respect. “We stand ready to defend our interests,” he stated, while also affirming the EU’s willingness to continue dialogue.
European Commission President Ursula von der Leyen noted that the EU had already made a zero-tariff offer to find a fair solution. “But if negotiations break down, all options remain on the table,” she said. A prepared EU response package includes potential countermeasures worth $108 billion targeting U.S. agricultural and industrial goods.
Trump’s announcement rattled financial markets. The STOXX 600 index dropped 1.7%, Germany’s DAX fell 2.4%, France’s CAC slid 2.2%, and the U.K.’s FTSE dropped 1%. In the U.S., the Dow Jones opened 480 points lower.
U.S. Treasury Secretary Scott Bessent said in a TV interview that the EU’s proposals have fallen short compared to other partners. “The EU has a collective action problem,” he said. Still, he hoped Trump’s firm position would help move talks forward.
Bessent noted that trade talks with India and several Asian countries are progressing well. “Except for the EU, most are negotiating in very good faith,” he said. Asian nations, in particular, are showing strong willingness to cooperate.
A major sticking point remains Europe’s treatment of U.S. tech giants. Trump argues that value-added taxes and digital service taxes unfairly disadvantage companies like Apple, Amazon, Meta, and Microsoft. These non-monetary trade barriers are “unfair and targeted at U.S. firms,” he claims.
In a separate Truth Social post, Trump threatened tech giant Apple with a 25% tariff if it continues manufacturing iPhones outside the United States. This followed a meeting with Apple CEO Tim Cook. While Apple has shifted some production to India, Trump expressed frustration that iPhones are not being made in the U.S. Treasury Secretary Bessent called the discussions with Cook “constructive.”
The newly proposed 50% tariff far exceeds the 20% reciprocal tariff briefly applied in April. Trump paused that rate to allow for negotiations, but the pause is set to expire on July 9. So far, only one agreement — with the United Kingdom — has been reached.
The move marks a new escalation in transatlantic trade tensions. Irish Prime Minister Micheál Martin called Trump’s threat “deeply disappointing” and warned of damage to global trade. French Trade Minister Laurent Saint-Martin said Europe remains committed to de-escalation — but is ready to respond if necessary.
With the June deadline approaching and little progress in talks, Trump appears determined to reshape global trade — even at the cost of straining long-standing alliances.