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Trump’s 50 percent tariff threat deepens US–EU trade tensions

Sunday 25 May 2025 - 07:03

By: Zahouani Ilham

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The European Union has firmly responded to former President Donald Trump’s threat to impose a 50% tariff on all EU imports, emphasizing that transatlantic trade should be based on mutual respect rather than coercion. Trump’s statement, made on Truth Social, described negotiations with Brussels as unproductive and warned of the steep tariff starting June 1. This latest escalation adds to growing friction between the two economic powers after months of diplomatic and trade-related strains.

The EU, with nearly 450 million citizens, remains the world’s largest trading bloc and a top U.S. economic partner. In 2024 alone, it exported over $600 billion worth of goods to the U.S. while importing about $370 billion in return.

Trump’s aggressive tone follows a similar move in April when he announced a 39% tariff on EU products, a decision he later reversed only to propose a harsher stance again. Stephen Moore, a former Trump adviser, told the BBC that the former president is frustrated by the EU’s failure to reach a deal, calling the tariff threat a warning shot.

European Trade Commissioner Maroš Šefčovič reiterated that EU-U.S. trade relations must be grounded in mutual respect. After discussions with U.S. trade officials, he expressed a desire to reach a balanced agreement.

Despite signs of willingness to negotiate, tensions have resurfaced as Trump revives his combative rhetoric from his first presidency, during which he portrayed the EU as exploiting the U.S. In 2018, Trump claimed that “nobody treats us worse than the EU” and accused it of being designed to take advantage of the United States a narrative he has repeated this year.

Members of Trump’s inner circle, including Vice President J.D. Vance, have echoed these views. At a Munich security conference, Vance criticized European leaders on issues like free speech, defense, and migration, claiming Europe was abandoning values shared with the U.S. Elon Musk, a key Trump ally, has also supported Germany’s far-right AfD party, which promotes leaving the EU.

Tensions over defense spending have also fueled the divide. Vance has opposed military aid to Ukraine, stating indifference to the conflict’s outcome. A leaked message also showed him initially opposing U.S. strikes in Yemen, arguing it would be an undeserved favor to Europe. Defense Secretary Pete Hegseth also accused Europe of over-relying on American protection.

Although Šefčovič continues to advocate for cooperation, the EU has begun preparing retaliatory measures, including $100 billion in potential tariffs. He recently stated that the EU favors negotiation, but not at any cost.

Europe is also adjusting its security stance, with Germany recently deploying troops abroad for the first time since World War II a sign it is preparing for a reduced American security role.

Amid this evolving landscape, the United Kingdom, now outside the EU, has managed to negotiate trade deals with both Brussels and Washington. Trump agreed to limit tariffs on British imports to 10%, positioning London in a delicate balancing act between its American and European partners.

However, as tensions escalate, even traditional allies may be drawn into the dispute. The EU, a powerful global actor, is unlikely to accept steep U.S. tariffs without responding in kind.