U.S. President Donald Trump announced plans Friday to impose a 50% tariff on all European Union imports starting June 1, citing stalled trade negotiations and accusing the bloc of exploiting American markets.
In a post on his Truth Social platform, Trump declared that discussions with the EU had reached an impasse. “Our discussions with them are going nowhere!” he wrote. “Therefore, I am recommending a straight 50% tariff on the European Union, starting on June 1, 2025.”
The unexpected announcement sent shockwaves through financial markets. S&P 500 futures dropped 1.5% ahead of the New York opening bell, while Europe’s STOXX 600 index fell 1.7%.
The proposal marks a sharp escalation in Trump’s trade policies. In April, his administration imposed a 20% “reciprocal” tariff on most EU goods before temporarily reducing it to 10% to allow for negotiations. Existing 25% tariffs on steel, aluminum, and auto parts remain in place, with threats of additional levies on pharmaceuticals and semiconductors.
EU negotiators have been in talks with the White House since Trump first announced his “liberation day” tariffs earlier this year. The bloc recently presented a new proposal offering phased tariff reductions on non-sensitive goods and cooperation in energy, artificial intelligence, and digital infrastructure. According to the Financial Times, Brussels also offered to extend a tariff-free arrangement on U.S. lobster imports—a concession aimed at easing tensions.
Despite these efforts, Trump’s latest threat suggests dissatisfaction with the EU’s stance. The president has long insisted on maintaining a baseline 10% tariff on most imports, while the EU has pushed for deeper cuts.
In a separate post, Trump also threatened a 25% tariff on iPhones manufactured outside the U.S., directly targeting Apple.
“I have long ago informed Tim Cook of Apple that I expect their iPhones sold in the United States to be manufactured here, not in India or anywhere else,” Trump wrote. “If that is not the case, a tariff of at least 25% must be paid.”
Apple has been shifting production from China to India and Vietnam in response to earlier U.S.-China trade tensions. The company’s supply chain adjustments now appear to have drawn Trump’s ire, further unsettling markets.
Trump’s hardline trade policies have roiled international markets since his return to office. While he has eased some tariffs—such as reducing levies on Chinese goods from 145% to 30% after negotiations—his latest threats signal a return to aggressive protectionism.
The EU has reportedly prepared $108 billion in retaliatory tariffs should talks collapse. Meanwhile, business leaders warn that consumers will bear the brunt of higher costs.
“A 50% tariff would limit our ability to sell European-made vehicles in the U.S.,” said Håkan Samuelsson, CEO of Volvo Cars. “But I believe a deal will be reached—it’s in neither side’s interest to shut down trade.”
As the July 8 deadline for negotiations approaches, the risk of a full-blown transatlantic trade war looms larger than ever.