Trump threatens the EU with 50% tariffs: trade war escalates!

Trump threatens the EU with 50% tariffs: trade war escalates!

On May 23, 2025, US President Donald Trump announced that he would significantly increase pressure on the European Union in the ongoing trade negotiations. In a post on his Truth Social platform, Trump stated that he wanted to impose import duties of 50 percent on European imports from June 1, 2025. He justifies this drastic measure with the EU's allegedly unfair trade barriers and the perceived slow negotiations on a possible trade agreement. Trump said that the talks with the EU were “going nowhere” and spoke of unilateral exploitation of the USA by the EU, which in his opinion was founded to disadvantage the USA in terms of trade policy.

The trade barriers cited by Trump include sales taxes, penalties on American companies, currency manipulation and lawsuits against US companies. However, if products are manufactured in the USA, the tariffs should not be imposed. This could attempt to boost domestic production and correct trade imbalances.

Market reactions and expert estimates

Trump's announcement is already having its first impact on the financial markets: European stock markets fell by around three percent, while Apple shares also fell. The DAX fell by around two percent and the euro came under pressure. There was increasing demand for safer investments, such as German government bonds. Holger Schmieding, chief economist at Berenberg Bank, described the situation as a “significant escalation” in trade tensions between the US and the EU.

These developments follow Trump's previous announcement of a 90-day pause on certain tariffs, issued in April 2025. This suspension also applied to the EU, which in turn also suspended planned counter tariffs on US products for 90 days. Trump had also threatened tariffs of 25 percent in the past if no agreement was reached with the EU by July. However, the question remains whether the new 50 percent punitive tariffs will actually come into force.

Consequences for companies

In addition, Trump threatened the tech giant Apple with import taxes of 25 percent if production of iPhones was not relocated to the USA. This use of tariffs to encourage US companies to produce more in the US is part of Trump's trade strategy, which also aims to strengthen the American economy. The impending action could have far-reaching implications for international trade relations and global economic stability, especially given the close economic ties between the US and the EU.

Overall, the situation remains tense as both sides try to get out of the current impasse. The pressure on trade negotiations will continue to increase, and the internationally networked economy is watching developments with concern.

For further details on the current trade conflicts, we recommend taking a look at the reporting from South German newspaper and daily news.