Trump threatens 50% tariff: EU under pressure before decisive deal!

Trump threatens 50% tariff: EU under pressure before decisive deal!

With US President Donald Trump's new tariff announcements, the EU is facing a massive challenge. On June 1, 2025, Trump plans to impose a 50 percent tariff on European goods if the EU does not make trade concessions. However, after a conversation with Ursula von der Leyen, President of the EU Commission, he granted a postponement until July 9, 2025 to allow negotiations. Von der Leyen had asked for more time to discuss the complex issues and find possible compromises. Despite this temporary relaxation, the EU's negotiating power remains limited compared to China, which is why the prospects of Trump giving in are considered to be low.

Trump is known for his distinctive trade strategies. His earlier about-face on tariffs on Chinese products could raise hopes of a similar change of course with the EU. Still, a complete reversal would be politically embarrassing for Trump. Experts believe a trade war with Europe would be less damaging to the U.S. than a conflict with China, where much of the goods considered "Chinese exports" to the U.S. are actually American products manufactured there.

Reactions and further tariff increases

As early as March 12, 2025, Trump introduced new tariffs of 25 percent on steel and aluminum imports, which prompted the EU to immediately announce countermeasures. These are set to come into force on April 1, 2025 and will impose tariffs of up to 50 percent on American products such as bourbon whiskey, video game consoles, boats and peanut butter. These conflicts are fueling fears of rising prices and unrest in global supply chains.

The EU is relying on negotiations and is signaling its willingness to cooperate; a deal to increase American liquefied natural gas exports could possibly play a role. Potential tariffs on cars and other goods from the EU are also being discussed. The seriousness of the situation becomes clear when one considers that over 5 percent of EU exports could be affected, although the exact impact on the European economy is classified as minimal, according to the Institute for the World Economy (IfW).

Impact on the European economy

The trade conflicts have direct consequences for various industries. While certain products such as jeans are only slightly affected by the tariffs, many companies fear that rising prices and possible job losses could further destabilize the economic situation in Europe. The EU appears even more willing to negotiate, both to protect its own economic interests and to counteract an escalation of the trade war.

Developments in trade relations between the USA and the EU not only raise national questions, but also affect the global economic climate. In such a fragile scenario, it remains to be seen how negotiations will develop and whether it is possible to avoid a full-scale trade war. Lost in EU and daily news will continue to report on developments.