Fri, 23 May 2025

Fri, 23 May 2025 Trump reignites tensions with EU tariff threats

EU says threats should not guide trade talks as Trump says he wants tariffs of 50% on European goods as soon as 1 June.
US President Donald Trump has reignited trade tensions by threatening a 50% tariff on all goods imported from the European Union. He also warned Apple that it would face a 25% import tax on iPhones not manufactured in America, expanding the threat to include any smartphone. The warning came just hours before scheduled trade talks between the two sides, with Trump announcing his plan to raise tariffs as previously set for June 1st. However, he left room for potential negotiations, hinting that a significant investment by a European company could lead to a delay in implementing the tariffs. European Union Trade Commissioner Maroš Šefčovič responded to the threat, stating that EU-US trade is unmatched and must be guided by mutual respect, not threats. The EU remains committed to securing a deal but warned it is prepared to retaliate if necessary. Analysts believe Trump's rhetoric may not translate into actual tariffs, as the EU is unlikely to back down in negotiations. Trade expert Aslak Berg from the Centre for European Reform stated that Trump's re-escalation of tariffs sets a bad precedent and shows his administration's intention to increase leverage ahead of talks. The US Treasury Secretary Scott Bessent expressed hope that the threat would "light a fire under the EU", while politicians from member states expressed dismay at the move, emphasizing the need for de-escalation and negotiated solutions.
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