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

Trump announced on social media Friday that he is recommending a 50% tariff on the European Union starting on June 1, 2025, in a significant escalation of trade talks with the E.U. Trump criticized the E.U. for trade practices he deemed unfair, including trade barriers, taxes, penalties, and lawsuits against American companies. He stated that the U.S. has a trade deficit of over $250 million annually with the E.U., calling the situation unacceptable.

Trump reiterated that products manufactured in the U.S. would not be subject to the tariff. U.S. Treasury Secretary Scott Bessent expressed hope that the tariff threat would prompt the E.U. to engage more actively in negotiations, which he perceived to be progressing slowly. The E.U. responded to Trump’s previous tariffs, labeling them detrimental to the global economy and promising countermeasures.

European leaders and businesses reacted to the news of the potential 50% tariff, with many expressing concerns and emphasizing the importance of negotiation over confrontation. Despite Trump’s success in trade negotiations with the U.K., tensions with the E.U. have been longstanding, with Trump criticizing the bloc’s trade practices and imposing tariffs during his first term.