U.S. President Donald Trump has threatened a 50% tariff on all goods imported from the European Union, starting June 1, 2025. This announcement cites a breakdown in trade negotiations and "unacceptable" trade practices.
Trump stated the U.S. faces a $250 billion annual trade deficit with the EU. He accused the EU of unfair trade tactics, including VAT taxes and unjustified lawsuits against American companies. The EU has described the US tariffs as “unjustified and damaging”.
European stock markets reacted sharply to the announcement on May 23, 2025. Germany's DAX, France's CAC, and London's FTSE all experienced declines. U.S. Dow futures also fell, signaling investor concern. The proposed tariff could reignite a transatlantic trade war, significantly impacting industries from automobiles to agriculture, and adding uncertainty to the global economy.