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President Donald Trump on Friday threatened to impose a sweeping 50% tariff on all European Union imports, escalating a transatlantic trade dispute and sending shockwaves through global financial markets. In a post on his Truth Social platform, Trump declared trade talks with the E.U. were “going nowhere” and said the massive tariff would take effect June 1, 2025.
“I’m recommending a straight 50% Tariff on the European Union,” Trump posted.
“They haven’t treated our country properly… They banded together to take advantage of us.”
The threat is significantly more aggressive than the 39% rate Trump proposed on April 2’s “Liberation Day“, and risks reigniting a trade war that had briefly cooled.
📉 Markets React Swiftly
Trump’s post sent European stock markets tumbling, with:
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Germany’s DAX falling nearly 3%
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France’s CAC 40 down 2.8%
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Italy’s FTSE MIB dropping 2.9%
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The Stoxx 600 index shedding 2.1%
U.S. markets also dipped, with the S&P 500 down 0.4%, Nasdaq Composite off 0.6%, and Dow Jones losing 150 points as of mid-afternoon.
Apple Also Targeted
In a separate threat, Trump warned Apple Inc. that the U.S. would impose a 25% tariff on its products unless the company begins manufacturing iPhones domestically.
“The concept of Apple producing iPhones in the U.S. is a fairy tale,” said Dan Ives, a tech analyst at Wedbush Securities.
“It’s logistically and financially unrealistic.”
What’s at Stake?
The E.U. is the United States’ second-largest trading partner, with recent trade figures showing:
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$550 billion in annual U.S. imports from the E.U.
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$350 billion in U.S. exports to the bloc
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Top imports: Pharmaceuticals ($90B), Automobiles ($45B), IT and scientific services
Political Fallout & Retaliation Looms
European Commission trade chief Maroš Šefčovič is expected to speak Friday with U.S. Trade Representative Jamieson Greer as part of emergency talks. The E.U. has prepared $100 billion in retaliatory tariffs, should negotiations break down.
Šefčovič previously warned, “We prefer negotiations, but not at any cost.”
Economists Warn of Economic Shock
Federal Reserve officials and economists quickly criticized the scale of the proposed tariffs. Chicago Fed President Austan Goolsbee said:
“Going to 50% is a completely different order of magnitude… This would be really scary for the supply chain.”
Business leaders in automotive, luxury goods, and pharmaceuticals expressed alarm as share prices fell for major firms including BMW, SAP, L’Oreal, Stellantis, and LVMH.
Trump’s Trade Team Stands Firm
Treasury Secretary Scott Bessent defended the hardline approach, saying, “With the exception of the E.U., most [countries] are negotiating in very good faith.”
Commerce Secretary Howard Lutnick continues to criticize the E.U.’s value-added tax system and “non-tariff barriers,” calling for a complete overhaul.
What’s Next?
The 50% tariff threat marks one of Trump’s most aggressive trade moves yet, surpassing even the heights of the 2018-2019 U.S.-China trade war. With less than two weeks before the proposed implementation date, all eyes will be on whether diplomacy can defuse the standoff — or whether a full-blown economic confrontation is inevitable.
