INA has escalated sharply in trade talks with the EU (EU) (EU), and Trump appealed to social media on Friday and announced that he “recommended 50% tariffs on the EU, starting from June 1, 2025.”

"The EU formed to capitalize on the main purpose of U.S. trade is difficult to deal with," Trump said. "Their strong trade barriers, VAT taxes, ridiculous corporate fines, non-monetary trade barriers, currency manipulation, unfair and unreasonable litigation against American companies and more litigation has resulted in a trade deficit with the U.S. of more than $250,000, and more than $250,000, which is completely unacceptable. Our discussion is completely unacceptable. Our discussion is completely unacceptable."

As he said elsewhere, Trump went on to add: “If the product was built or manufactured in the United States, there are no tariffs.”

Treasury Secretary Scott Bessent said on Fox News that he hopes Trump's tariff threats are updated with EU negotiations, insisting he has been acting at a slower pace than others.

"I hope this will light a fire under the EU," he said. "The EU has a collective action issue here. It's 27 countries, but this group representative in Brussels. Some of the feedback I've received is that the base countries don't even know that the EU is negotiating on their behalf."

Trump's initial April 2 "Liberation Day" tariffs included a national 10% tariff on conducting business in the United States, and some "reciprocal" tariffs for some. The EU has been hit with a 20% reciprocal tariff.

In response, EU executive, the president of the European Commission, the European Commission, issued a strong statement saying the move "has a blow to the world economy" and vowed that the EU would object.

She said: "We are together. If you accept one of us, then you will do it to all of us."

The EU voted in favor of retaliation against some of Trump’s tariffs, but the discussion stopped when Trump announced a 90-day pause on most of the “reciprocity” allegations. While the 90-day pause, scheduled to expire on July 9, has provided probation for the EU, the threat of Trump enforcing a 50% tariff starting on June 1 has once again encountered tensions, and the market has reacted negatively to the market.

Hours after Trump's announcement on Friday, European Commission Trade and Economic Security Commissioner Maroššisfčovič posted on X that he had a discussion with Trump's Business Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer.

"The EU is fully involved and is committed to ensuring a transaction that is effective for both," said šefčovič. The EU is still ready to work sincerely. ” “EU trade is unparalleled and must be guided by mutual respect rather than threats. ”

But fearing of the U.S. EU trade war, Šefčovič concluded in a provocative note: “We are ready to defend our interests.”

The EU is one of Washington's top business partners and the largest trading group in the world.

Trump defended his announcement in the Oval Office on Friday, complaining about EU business deals and citing the EU’s U.S. commodity trade deficit, which cited $235.6 billion in 2024, according to the U.S. Department of Commerce.

"I'm not looking for a deal," Trump told reporters. "We set this deal at 50%.

Europe responds to the prospect of 50% tariffs

Both European political and business leaders responded to the news and prepared for possible situations.

Hakan Samuelsson, CEO of Sweden-based Volvo Cars, told Reuters that tariffs would limit the company's ability to sell certain of its vehicles in the United States, such as those built in Belgium, and said its customers would have to pay a significant portion of the fees. "I believe an agreement will be reached soon. It is impossible for them to close trade between them to be in Europe or the United States," he said, saying that despite the tax threat, negotiations will move forward in a positive way.

Ireland Doysach (Prime Minister) Micheál Martin wrote on X that he found Trump's announcement "very disappointing" and stressed that he believes "the tariffs have caused damage to all parties".

"The results of the negotiations are the best results for both sides and global trade," Martin said. "The EU has been participating sincerely in the process."

Germany's Foreign Minister Johann Wadephul told reporters that Germany will support the EU to "defend Europe" through negotiations to allow Europe to enter the US market. "I don't think this tariff will help, but it will cause both markets to suffer economic development," Wadephul said.

French minister Laurent Saint-Martin stressed in a televised interview that the trade war needs to be “lowered”, which echoes the emotions he has expressed before through social media.

"During negotiations between the EU and the U.S., Trump's new threat to tariffs won't help. We maintain the same boundaries: downgrade, but be prepared to respond."

Tension history between Trump and the EU

Trump's tariff threat comes after years of stressing his grievances over trade between the United States and the European Union

During his first term, Trump imposed tariffs on steel and aluminum imports from the EU, Canada and Mexico, bringing the United States to the brink of a trade war. When asked about tariffs in 2018, Trump said: “No one is worse than the EU” and believed the group was “formed” to “harness” the United States

In the first few months of Trump's second term in the White House, tensions grew due to his volatile trade policies, and his geopolitical actions against the Russian-Ukrainian war.

Meanwhile, outside the EU, Trump has achieved some success in the trade deal. Trump said on Friday’s truth social that the U.S. dealing with Britain is “good for everyone.” This is after the U.S. and the U.K. announced a trade agreement on May 8, which Trump praised the deal for “reciprocity and fairness.”