Trump’s tariff threat, according to Bessent, may force the EU to take action in trade negotiations

Investor David Bessent thinks the EU may move more quickly in trade talks as a result of Trump’s tariff warning.

President Donald Trump is unhappy with the quality of the European Union’s trade proposals, according to US Treasury Secretary Scott Bessent, who stated Friday that he hopes a proposed 50% tariff on EU goods, which would go into effect on June 1st, will force Brussels to engage in more serious talks with Washington.

Bessent said in an interview with Fox News that although the EU is still an exception, many of the US’s important trading partners are acting in good faith. He stated, “I think the president feels that the EU’s proposals have not been as good as what we’ve seen from our other major trading partners.”

Trump warned that Apple might be subject to a 25% tariff on iPhones made outside of the US and announced his proposal for a 50% tariff on EU imports earlier Friday, further escalating trade tensions. The comments came after Bessent returned from a conference of G7 finance leaders in Banff, Alberta, where, in a joint statement aimed at resolving global economic imbalances, serious differences over US tariffs were mainly sidelined.

“In Canada, the talk went well. Reflecting on the mood of the G7 talks, Bessent said, “The problem was the lead up to that.” Trade negotiations with other countries, such as India and a number of Asian nations, have advanced, he said, and they have presented what he called “very interesting proposals.”

Bessent added that progress is being hampered by internal EU uncertainty. “Some EU countries are telling me that they don’t know about the proposals that the European Commission is putting forth from Brussels,” he stated. “This is a collective action issue for the EU. There are 27 countries, yet just one group represents them in Brussels. It is my hope that this will ignite a fire within the EU.

Bessent said the government is eager to see more precision manufacturing, especially of semiconductors, return to the US in response to Trump’s threat to levy a 25% tariff on Apple iPhones built abroad. “I believe that this external production, particularly in semiconductors, is one of our biggest weaknesses. Additionally, a significant portion of Apple’s components are found in semiconductors,” he clarified. “Therefore, we would like Apple to assist us in strengthening the security of the semiconductor supply chain.”