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‘Going nowhere’: Trump reignites EU trade war with 50% tariff threat

Author
AFP,
Publish Date
Sat, 24 May 2025, 8:39am
US President Donald Trump has slammed inaction from Brussels. Photo / Getty Images
US President Donald Trump has slammed inaction from Brussels. Photo / Getty Images

‘Going nowhere’: Trump reignites EU trade war with 50% tariff threat

Author
AFP,
Publish Date
Sat, 24 May 2025, 8:39am

US President Donald Trump rekindled his trade war with the European Union Friday as he insisted he would slap a 50% tariff on the bloc because talks with Brussels were 鈥済oing nowhere鈥.

Trump also unleashed a separate broadside against smartphone makers including US tech giant Apple, threatening them with new duties of 25% if they do not move their production to the United States.

Stock markets fell as the Republican鈥檚 comments rekindled fears of global economic disruption, after a relative lull in recent days after Trump reached deals with China and Britain.

Trump first threatened the EU tariffs in an early morning post on his Truth Social network.

鈥淥ur discussions with them are going nowhere!鈥 Trump said. 鈥淭herefore, I am recommending a straight 50 per cent Tariff on the European Union, starting on June 1, 2025.鈥

He doubled down later in the day, telling reporters in the Oval Office that there was nothing the 27-nation bloc could do to change his mind.

鈥淚鈥檓 not looking for a deal. I mean, we鈥檝e set the deal. It鈥檚 at 50 per cent,鈥 Trump said. 鈥淭hey haven鈥檛 treated our country properly. They banded together to take advantage of us.鈥

Billionaire property tycoon Trump, 78, also denied that his tariffs would hurt American businesses.

鈥淭hey鈥檙e not hurting, they鈥檙e helping,鈥 he said.

鈥楨normously disappointing鈥

Trump鈥檚 new tariffs would, if imposed, dramatically raise Washington鈥檚 current baseline levy of 10% and fuel simmering tensions between the world鈥檚 biggest economy and its largest trading bloc.

European leaders reacted with dismay to the US president鈥檚 announcement.

Irish Prime Minister Micheal Martin called Trump鈥檚 announcement 鈥渆normously disappointing鈥, writing on X that 鈥渢ariffs are damaging to all sides.鈥

French trade minister Laurent Saint-Martin said his country鈥檚 position was 鈥渄e-escalation, but ready to respond鈥.

An EU spokesperson declined to comment, saying a call was planned for later in the day between EU Trade Commissioner Maros Sefcovic and US trade representative (USTR) Jamieson Greer.

In a separate message posted Friday that also unnerved markets, Trump blasted Apple boss Tim Cook for failing to move iPhone production to the US despite his repeated requests.

Trump said he had 鈥渓ong ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.

鈥淚f that is not the case, a tariff of at least 25% must be paid by Apple to the US.鈥

Trump later stepped up his threats, saying he would hit all smartphones not made in his country.

鈥淚t would be also Samsung and anybody that makes that product, otherwise it wouldn鈥檛 be fair,鈥 Trump told reporters, adding that the new tariffs would come into effect from the 鈥渆nd of June鈥.

Market worries

Trump imposed sweeping tariffs on most of the world on what he called 鈥淟iberation Day鈥 on April 2, with a baseline 10 per cent plus steeper duties including a 20 per cent levy on the EU.

Markets were thrown into turmoil but calmed after he paused the bigger tariffs for 90 days.

Trump has since claimed early successes in deals struck with Britain and with China, the world鈥檚 second-biggest economy.

But talks with the EU have failed to make much progress, with Brussels recently threatening to hit US goods worth nearly 鈧100 billion ($190b) with tariffs if it does not lower the duties on European goods.

US Treasury Secretary Scott Bessent told Bloomberg Television on Friday the lower 10 per cent tariff rate was 鈥渃ontingent on countries or trading blocs coming and negotiating in good faith鈥.

Traders were unnerved by Trump鈥檚 latest salvo against Europe.

Wall Street鈥檚 main indexes were all down around 1% two hours into trading, with the tech-heavy Nasdaq at one stage losing 1.5% before rallying while Apple shares sank 2.5%.

Paris and Frankfurt ended with losses of around 1.5%, while London鈥檚 FTSE 100, which initially rose, also ended in the red.

鈥淭he administration had kind of hinted that they were considering imposing reciprocal tariffs on countries that weren鈥檛 negotiating in good faith,鈥 Barclays senior US economist Jonathan Millar told AFP.

-Agence France-Presse

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