US-EU Trade Tensions Escalate as Trump Threatens Tariffs
In a move that has sparked concerns about the impact on the global economy, US President Donald Trump has announced plans to raise tariffs on all goods sent to the US from the European Union to 50% by June 1. The decision has been met with criticism from European leaders, who have warned that such a move would harm both economies.
According to a report by the BBC, Trump made the announcement while speaking to reporters at the White House on Friday afternoon, hours before talks with the EU. The President expressed impatience with the ongoing negotiations, which have been focused on resolving the US-EU trade dispute.
In her own online post, European Commission President Ursula von der Leyen wrote: "To reach a good deal, we would need the time until July 9." Trump’s acceptance of that date means the deadline is close to what it was previously. Before threatening the 50% rate, Trump had set a deadline of July 8 for both sides to talk.
The US President has long criticised what he views as an unfair US trading relationship with the EU, despite the bloc being one of Washington’s largest trading partners. According to US government data, the EU exported more than $600bn (€528bn; £443bn) in goods to the US last year, while importing $370bn worth. The BBC reports that Trump has defended his wide-ranging programme of tariffs by arguing they will boost American manufacturing and protect jobs.
However, many economists have warned that the tariffs will make products more expensive for US consumers. Tariffs are taxes charged on goods bought from other countries, paid by the companies that bring foreign goods into the US. The BBC notes that, in the case of the EU, Trump has raised concerns on trade in cars and agricultural goods. Although some tariffs were paused earlier this year to allow for negotiations, a 25% levy on EU steel and aluminium remains in place.
The EU’s trade chief, Maros Sefcovic, reaffirmed the bloc’s commitment to securing a fair deal in a statement on Friday. Following a call with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick, Sefcovic said: "The EU is fully engaged, committed to securing a deal that works for both." He continued: "EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests."
The EU has threatened – and paused – its own measures against the US. It previously said it would introduce a 25% tariff on €18bn worth of US goods coming into Europe, but this was put on hold. The bloc is also currently consulting on additional measures against US imports into the US valued at €95bn.
European leaders have continued to warn against escalation, with France and Germany calling for a diplomatic solution. They stress that tariffs would harm both economies, and are urging a negotiated settlement to the trade dispute. As the BBC reports, the situation remains tense, with both sides dug in and refusing to back down.
In conclusion, the US-EU trade dispute shows no signs of abating, with Trump’s threat to raise tariffs to 50% sparking concerns about the impact on the global economy. The BBC will continue to provide updates on this developing story as more information becomes available.
