In a bold move that’s reigniting global trade tensions, U.S. President Donald Trump is recommending a 50% tariff on European Union (EU) imports starting June 1. This shock announcement, intended to pressure Brussels into improving its trade offers to Washington, is already sparking intense debate—and uncertainty in global markets.
U.S. Treasury Secretary Scott Bessent, speaking on Fox News, confirmed the administration’s frustration with the EU’s negotiation stance. “The President feels that the EU has not matched the goodwill we’ve seen from other trading partners,” Bessent stated. “He hopes this bold tariff proposal will push the EU to take these talks more seriously.”
Trump’s message was unambiguous: trade partners who negotiate in good faith get better deals. While nations like India and several Asian countries have reportedly submitted promising proposals, the EU’s offers, according to Bessent, fall short in quality and commitment. He pointed to the bureaucratic nature of the EU’s decision-making, describing it as a “collective action problem,” where 27 member countries are represented by a single body in Brussels—often leading to slow or unclear negotiation outcomes.
Interestingly, Bessent noted that some EU nations appear unaware of the proposals being made on their behalf by the European Commission. “I’m not here to negotiate on television,” he added, “but it’s clear the process is not working as well as it should.”
Adding more fuel to the fire, Trump also floated the idea of slapping a 25% tariff on Apple iPhones made outside the U.S. The goal? Bring precision manufacturing, especially semiconductors, back to American soil. “One of our biggest vulnerabilities is relying on external semiconductor production,” Bessent explained. “Apple can play a key role in helping us secure our semiconductor supply chain.”
This announcement came just after a tense G7 finance ministers meeting in Banff, Alberta, where discussions tried to bridge sharp disagreements over Trump’s trade policies. Despite the evident friction, leaders managed to reach a broad consensus on reducing imbalances in the global economy.
The EU has yet to formally respond to the tariff threat, but experts warn the impact could be significant. A 50% tariff would not only escalate the trade conflict but potentially trigger retaliatory measures from Brussels—further straining transatlantic relations.
As the clock ticks down to June 1, the world will be watching whether this latest round of tariff brinkmanship leads to a deal—or to a full-blown trade war.
