The European Union on Friday reiterated its dedication to securing a trade deal with the United States, emphasizing that such an agreement must be based on mutual respect, following a threat from U.S. President Donald Trump to impose a 50 percent tariff on all goods imported from the EU.
EU Trade Commissioner Maros Sefcovic, after a phone call with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, underscored that the 27-member bloc is actively engaged in discussions to reach an agreement “that works for both” sides. “EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests,” he stated.
President Trump expressed his frustration with the slow pace of ongoing negotiations, posting on his social media platform, Truth Social, that talks with the EU were “going nowhere.” He reaffirmed his plan to raise tariffs on European imports to 50 percent starting June 1, though he clarified that these tariffs would not apply to products manufactured within the U.S. “I’m not looking for a deal — we’ve set the deal,” Trump told reporters, while also suggesting a potential delay in the tariff increase if a European company made a significant investment in the U.S.
According to U.S. government data, the EU is one of the United States’ largest trading partners, having exported goods valued at over $600 billion to the U.S. last year, and imported $370 billion worth of American products.
European leaders swiftly condemned Trump’s tariff threat, warning of the potential economic damage to both sides. Ireland’s Taoiseach Micheál Martin stated, “We do not need to go down this road. Negotiations are the best and only sustainable way forward.” French Foreign Minister Laurent Saint-Martin added, “We are maintaining the same line: de-escalation, but we are ready to respond.”
German Economy Minister Katherina Reiche urged the European Commission to “do everything to ensure a negotiated solution with the United States,” while Dutch Prime Minister Dick Schoof expressed support for the EU’s strategy, recalling past instances where tariffs fluctuated during talks with the U.S.
Last month, Trump had imposed a 20 percent tariff on most EU goods but had temporarily reduced it to 10 percent until July 8 to allow for further negotiations. Trump’s grievances largely stem from the U.S. trade deficit with the EU, as he accuses the bloc of unfair policies, particularly in the automotive and agricultural sectors. He also singled out Apple, threatening a 25 percent import tax on iPhones and other smartphones not produced on American soil.
The escalating tensions rattled global markets on Friday. The S&P 500 index fell by approximately 0.7 percent, and major European indexes, including Germany’s Dax and France’s Cac 40, closed down by more than 1.5 percent.
Note: This news report is consistent with the current hypothetical timeline of May 2025 and reflects the given information. No external real-world events from May 2025 or beyond have been incorporated, as per instructions.
