Trump’s proposed 50% tariff on European goods prompts the EU trade chief to demand respect over threats

The alliance has called for mutual respect and recommitted to fair negotiations in response to Trump’s threat of a 50% tariff on EU exports.

After American President Donald Trump threatened to put a 50% tariff on all EU goods entering the US, European leaders and trade officials responded firmly, escalating tensions between the EU and the US on Friday.

The 27-nation union is still dedicated to negotiating a fair and balanced trade deal with the United States, EU Trade Commissioner Maros Sefcovic emphasized. Following a conversation with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, Sefcovic declared, “The EU is fully engaged, committed to securing a deal that works for both.” “EU-US trade is unparalleled and needs to be governed by respect for one another rather than threats.” We are prepared to protect our interests.

The comments come after Trump recently lamented the sluggish progress of EU-US trade negotiations in a post on his Truth Social platform. Trump wrote, “Our conversations with them are not progressing.” “We have already made the deal; I’m not looking for one.”

Later, when addressing reporters, Trump stated that the proposed 50% tariffs would take effect on June 1st, but he made a suggestion that he would change his mind if a significant European business made a “big investment” in the US. Additionally, he restated that the duties will not apply to goods manufactured in the United States.

The EU is one of America’s biggest commercial partners, with nearly $600 billion in products shipped to the US and $370 billion imported last year. European leaders swiftly retaliated against Trump’s belligerent actions.

French Foreign Minister Laurent Saint-Martin stated that the bloc was ready to react if needed, while Irish Prime Minister Micheál Martin cautioned that “negotiations are the best and only sustainable way forward.” He stated, “We are prepared to respond, but we are sticking to the same line: de-escalation.”

“We must do everything to ensure that the European Commission reaches a negotiated solution with the United States,” said Katherina Reiche, Germany’s minister of economy, in an appeal for a diplomatic solution. Dutch Prime Minister Dick Schoof went on to say that the EU must stay together and that tariffs have historically fluctuated during trade talks with the US.

Trump has long pointed to a continuous trade deficit as evidence of the EU’s “uneven trade relationship.” He has criticized European agricultural policy and vehicle imports, claiming that EU rules unjustly hurt American businesses.

This week, he also threatened to put a 25% import tax on iPhones that were not manufactured in the United States, subsequently extending the threat to all cellphones.

The heightened trade tensions caused a significant reaction in the financial markets. While France’s CAC 40 and Germany’s DAX both fell more than 1.5%, the S&P 500 closed down 0.7%.

After Trump lowered a previously proposed 20% duty on EU imports to 10% last month, the EU and US have been negotiating under a temporary reprieve, with additional discussions due on July 8.

With only a few weeks remaining, both parties are balancing political pressure with economic priorities, raising the possibility of a full-scale trade war.