Trump Threatens 50% Tariffs on EU Imports Amid Stalled Trade Talks

U.S. President Donald Trump has threatened to impose a 50% tariff on goods imported from the European Union starting June 1, unless trade negotiations between the two sides make significant progress. The announcement was made during a press briefing on May 23, 2025, and immediately sent shockwaves through financial markets.

Trump emphasized that the United States would no longer tolerate what he called “chronic imbalances” in trade with Europe. “They’ve taken advantage of us for too long,” the president said, adding that the EU must agree to “fairer terms” or face severe economic consequences.

The European Commission responded by calling the move “unjustified and hostile,” warning that it could lead to retaliatory measures and a new phase of transatlantic trade tension. EU Trade Commissioner Elisabeth Werner said that the bloc remains committed to dialogue but “will not be intimidated.”

Economists warn that the proposed tariffs could impact hundreds of billions of dollars in trade annually and disrupt industries ranging from automobiles to luxury goods. Wall Street reacted swiftly to the news, with the S&P 500 falling 0.9% and the Nasdaq losing 1.2% by the close of trading.

If enacted, this would represent one of the largest tariff hikes in modern U.S.-EU trade relations and could signal a dramatic shift in economic diplomacy under the Trump administration.