The EU US trade war is heating up again after former U.S. President Donald Trump issued a bold warning: he may impose a 50% tariff on all goods imported from the European Union into the United States. This announcement sent shockwaves through global markets and prompted a swift response from European leaders, who emphasized that trade must be based on respect—not threats.
EU Responds to Trump’s 50% Tariff Warning
Speaking after a high-level meeting with U.S. Trade Representative Jamison Greer and Commerce Secretary Howard Lutnick, EU Trade Commissioner Maroš Šefčovič made the bloc’s position clear.
“The EU is fully committed to securing a deal that works for both sides. EU-US trade is unparalleled and should be guided by mutual respect, not threats. We are prepared to defend our interests,” Šefčovič said.
The EU US trade war appeared to enter a new phase when Trump took to social media, expressing frustration over the slow pace of negotiations and hinting that the tariffs could take effect by June 1.
“Talks with the [EU] are going nowhere,” Trump posted, adding that no tariffs would apply to goods manufactured in the U.S.
Later, he told reporters, “I’m not looking for a deal—we already have a deal,” but hinted that a major European investment in the U.S. could delay his decision.
What’s at Stake in the EU US Trade War?
The European Union is one of the U.S.’s largest trading partners. According to U.S. government data, the EU exported over $600 billion worth of goods to the U.S. last year, while the U.S. exported about $370 billion to the EU.
European leaders quickly condemned the move, warning that the EU US trade war would damage both economies.
- Irish Prime Minister Micheál Martin said, “We don’t need to go down this road. Dialogue is the best and only sustainable path forward.”
- French Foreign Minister Laurent Saint-Martin added, “We remain on the same line—de-escalation—but we are ready to respond.”
- German Economy Minister Katharina Reiche emphasized the need for resolution, and Dutch Prime Minister Dick Schoof backed the EU’s unified stance.
U.S. Strategy and Trump’s Broader Trade Vision
Stephen Moore, former Trump adviser and a member of the conservative Heritage Foundation, suggested that Trump may consider breaking from negotiating with the EU as a bloc and instead engage individual European countries.
“Trump’s ultimate goal is to decouple not just the U.S., but the entire world from Chinese influence,” Moore said.
In April, the U.S. had already imposed a 20% tariff on most EU goods, and although the 50% tariff hasn’t taken effect yet, a 10% baseline tariff remains. Higher tariffs on Chinese imports are also still in place, although some were reduced.
The EU US trade war escalated further when Trump warned U.S. tech giant Apple that iPhones not made in America could face a 25% import tax—a move that could signal broader consequences for global tech manufacturing.
Market Reaction and What’s Next
Financial markets reacted quickly. On Friday, the S&P 500 dropped by 0.7%, while European markets took a sharper hit: Germany’s DAX and France’s CAC 40 fell by over 1.5%.
While the EU has paused its plan to impose 25% tariffs on $20 billion of American goods, officials confirmed they are reviewing countermeasures on €95 billion worth of U.S. imports.
The fate of the EU US trade war now hangs on whether both sides return to the negotiating table—or dig in for a deeper economic conflict.
