The Voice News :The European Union’s trade chief has called for a trade relationship based on mutual respect, after U.S. President Donald Trump threatened to impose a 50% tariff on all goods imported from the EU.
EU Trade Commissioner Maroš Šefčovič emphasized the bloc’s commitment to securing a fair trade deal with the U.S., stating, “EU-US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests.” His remarks came after talks with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
Trump expressed frustration over stalled trade negotiations, declaring that his plan to raise tariffs on June 1 was set in stone. He tweeted, “Our discussions with [the EU] are going nowhere,” but clarified that goods manufactured in the U.S. would be exempt from the tariffs. Later, he hinted that a significant investment by a European company in the U.S. might delay the tariff imposition.
The EU is one of the U.S.’s largest trading partners, exporting over $600 billion in goods to America last year while importing $370 billion from the U.S., according to government data.
European leaders quickly voiced concerns that tariff hikes would harm both sides. Ireland’s Taoiseach Micheál Martin urged that “negotiations are the best and only sustainable way forward.” France’s Trade Minister Laurent Saint-Martin affirmed a stance of de-escalation but warned that the EU was ready to respond if needed. German Economy Minister Katherina Reiche stressed the importance of finding a solution, while Dutch Prime Minister Dick Schoof supported the EU’s trade approach, noting tariffs have fluctuated in past U.S.-EU negotiations.
Meanwhile, Stephen Moore, former economic advisor to Trump, suggested the U.S. might seek separate trade agreements with individual European countries rather than the entire bloc. He also stated that Trump’s broader goal is to reduce global dependence on China, which he considers beneficial if achieved.
Earlier this year, Trump imposed a 20% tariff on most EU goods entering the U.S., but paused higher tariffs for three months to allow negotiations to continue, maintaining a 10% baseline tax. The U.S. also kept a 25% tariff on EU steel and aluminum imports.
The EU has retaliated with threatened tariffs on $20 billion worth of U.S. goods, though those measures are currently on hold. The bloc is also considering additional tariffs on $95 billion of U.S. imports.
Trump’s complaints focus on the trade imbalance, accusing the EU of policies that disadvantage American companies, especially in sectors like automobiles and agriculture. He also threatened to impose a 25% import tax on Apple’s iPhones not manufactured in the U.S., later expanding the warning to include all smartphones.
Markets reacted negatively to the escalating tensions, with the U.S. S&P 500 falling 0.7%, and Germany’s DAX and France’s CAC 40 both dropping over 1.5% following the latest tariff threats.