Donald Trump Proposes 50% Tariff on European Union Starting June 1

Former President Trump’s Bold Trade Move Shakes Global Markets

On Friday, former U.S. President Donald Trump announced a bold proposal: a 50% tariff on all imports from the European Union (EU), effective June 1, 2025. The statement, posted on his Truth Social platform, came amid Trump’s growing frustration over stalled trade negotiations with the EU.

Trump declared that the EU “has been very difficult to deal with” and claimed that discussions were going “nowhere.” The drastic measure is seen as a direct response to what he describes as unfair and manipulative trade practices by the 27-nation bloc.

Why Is Trump Calling for a 50% Tariff?

According to Trump, the EU has long taken advantage of the United States through:

High VAT taxes

Non-monetary trade barriers

Unjust corporate penalties

Currency manipulation

Over $250 billion annual trade deficit

In his words:
“The EU was formed primarily to take advantage of the U.S. on trade. Talks are going nowhere. Therefore, I’m recommending a straight 50% tariff on all goods from the EU—unless they are manufactured in the United States.”

Immediate Impact on Financial Markets and U.S. Businesses

Following the announcement, U.S. and European stock markets saw a sharp decline, with investors concerned about the potential economic fallout. Rising import costs could translate to higher consumer prices and lower corporate profits.

In a related move, Trump also threatened to impose a 25% tariff on Apple iPhones if the company does not move its manufacturing operations back to the U.S.

Is a New U.S.–EU Trade War Looming?

The proposed tariff sets the stage for a tense exchange between U.S. Trade Representative Jamieson Greer and EU Trade Commissioner Maros Sefcovic. According to the Financial Times, U.S. officials believe the EU’s latest offers fall short of American expectations.

The EU is the second-largest market for U.S. exports, purchasing more than $351 billion worth of goods in 2022. A blanket 50% tariff could prompt swift retaliation from Brussels, risking a broader trade conflict.

Expert Opinions: A Risky Economic Gamble?

Chicago Federal Reserve President Austan Goolsbee voiced concern, stating that such high tariffs could create stagflation—a scenario of rising prices and slowing economic output.
"Raising production costs while also increasing consumer prices is a central bank’s worst nightmare," Goolsbee said.

Conclusion: Strategic Leverage or Political Gamble?

Trump’s proposal is sparking intense debate. While some view it as a patriotic push for fair trade under the “America First” agenda, others warn that it could trigger a new wave of economic instability.

Is this a calculated negotiation tactic—or a risky move driven by political motives? The world will be watching as the EU prepares its response and markets brace for what could come next.

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