Trump Threatens Major Tariff Surge of 50% on EU Amid Trade Frustrations

[Social Media]

 

Trump Threatens Major Tariff Surge on EU Amid Trade Frustrations

 

U.S. President Donald Trump has reignited transatlantic trade tensions by proposing a sweeping 50% tariff on goods from the European Union, warning that current negotiations have stalled and accusing the bloc of longstanding unfair trade practices.

 

In a fiery post on Truth Social Friday morning, Trump expressed deep dissatisfaction with the trajectory of talks between Washington and Brussels. “Their powerful Trade Barriers, VAT Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,” he wrote.

 

He added, “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”

 

The European Commission did not immediately issue a formal response. Olof Gill, a spokesperson for the Commission, said they would withhold comment until after a scheduled call between European Commissioner for Trade Maroš Šefčovič and U.S. Trade Representative Jamieson Greer. The call was reported by Reuters to be set for 11 a.m. ET Friday. The U.S. Trade Representative’s office has not responded to media requests for comment.

 

Markets reacted swiftly to the announcement. Major European indexes plunged, with Germany’s DAX falling 2.6%, France’s CAC down 2.8%, and the UK’s FTSE slipping 1.3%. U.S. stock futures also dipped sharply, with futures tied to the Dow dropping over 600 points, or 1.4%.

 

The proposed 50% tariff would more than double the 20% levy Trump previously implemented in April before pausing the measure to allow time for negotiations. That pause, set to expire on July 9, produced only one new agreement, with the United Kingdom, leaving broader EU talks unresolved.

 

Trump has consistently criticized what he refers to as “non-monetary trade barriers” and has shown particular disdain for policies that result in the U.S. running a trade deficit. The former president often argues that the U.S. gets the short end of trade deals, particularly when the country imports more than it exports. Commerce Department data showed a $236 billion trade deficit between the U.S. and EU in 2023—less than the $250 billion Trump claimed but still significant.

 

His objections also target EU taxes such as value-added taxes (VATs) and digital service taxes (DSTs). VATs are indirect taxes imposed on goods and services, and though they are refunded on exports from the EU, they are applied to imports, including those from the U.S. Trump argues this creates an imbalance in trade.

 

DSTs have been another major sticking point. These taxes apply to the gross revenue generated by digital services companies operating within a country, regardless of their profitability. This tax model disproportionately impacts American tech giants like Meta, Google, Amazon, Apple, and Microsoft. A report from the Congressional Research Service last year underscored that U.S.-based firms bear the brunt of DSTs, raising concerns about digital trade discrimination.

 

As Trump eyes a potential return to the White House, this bold tariff threat signals a return to aggressive trade policy tactics reminiscent of his first term. Whether this move forces a breakthrough in negotiations or triggers a full-blown trade war remains to be seen.

 

  Adapted by ASEAN Now from CNN  2025-05-24

 

 

[Tug]

seems no one is folding to trumps bulleying ……+ he needs a distraction from last nights corruption gala dinner….thats not going over well.I predict a much more orange tone to his skin over the next several days(usually does when he’s on the hook for something)now watch the bond market sell off on next Tuesday……unless he flops before then.

[Jingthing]

A literal enemy foreign power couldn't do more damage to America than Trump is doing -- the so called president. 

How can the USA suffer four years of this self inflicted American carnage?

[HappyExpat57]

29 minutes ago, Tug said:

seems no one is folding to trumps bulleying ……+ he needs a distraction from last nights corruption gala dinner….thats not going over well.I predict a much more orange tone to his skin over the next several days(usually does when he’s on the hook for something)now watch the bond market sell off on next Tuesday……unless he flops before then.

 

[FlorC]

5 hours ago, Social Media said:

“Their powerful Trade Barriers, VAT Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,” he wrote.

Do it mr Trump , not just threaten. Make it 100 %.

But the euro's will never let go of their unreasonably high VAT.

[Chomper Higgot]

9 minutes ago, FlorC said:

Do it mr Trump , not just threaten. Make it 100 %.

But the euro's will never let go of their unreasonably high VAT.

You complain about VAT while calling for tariffs.

 

Have thought that through… at all?

[FlorC]

3 minutes ago, Chomper Higgot said:

You complain about VAT while calling for tariffs.

 

Have thought that through… at all?

YES !

[bubblegum]

6 minutes ago, FlorC said:

YES !

Not your strong point.

[HappyExpat57]

The USD has only been this weak once briefly since Covid. The on-again off-again tariff nonsense is undermining what was previously a given pertaining to the stability of the dollar.

[Chomper Higgot]

2 minutes ago, HappyExpat57 said:

The USD has only been this weak once briefly since Covid. The on-again off-again tariff nonsense is undermining what was previously a given pertaining to the stability of the dollar.

It’s also wrecking the thriving economy Trump inherited from Biden.

 

Though good for those engaged in insider trading.

[advancebooking]

The geriatric old president is playing more games. Another 3 to 4 years of this B.S.    

 

It all could have been different now if his head was just 1 inch to the left

[Digitalbanana]

27 minutes ago, FlorC said:

Do it mr Trump , not just threaten. Make it 100 %.

But the euro's will never let go of their unreasonably high VAT.

Makes no sense at all, much like Trumps daily mood swings on tariffs. Best to ignore the idiots of the world.

[HappyExpat57]

[JonnyF]

The EU always drag their feet. They react with the speed of an oil tanker.

 

Stick it to em Don. They don't understand the carrot they need the stick. 

[impulse]

6 hours ago, Social Media said:

warning that current negotiations have stalled and accusing the bloc of longstanding unfair trade practices.

 

He's not wrong.

 

 

[gargamon]

36 minutes ago, advancebooking said:

The geriatric old president is playing more games. Another 3 to 4 years of this B.S.    

 

It all could have been different now if his head was just 1 inch to the left

Actually, 1 inch to the right.  And it was only shrapnel, not a bullet so it wouldn't have made a difference.

[Patong2021]

Trump will back down and fold like he did with the Chinese. 

The collapse of the US position when faced with the Chinese discipline has set the example for the rest of the world and it is paying off for the Chinese.   

 

Chinese automaker GAC announced  this past week its product launch in Brazil, and its intention to build a  new  factory in the in late 2026. In 2025, GAC announced its plans to invest 6 billion reais (US$1.06 billion) in Brazil over five years. The vehicles it will sell in Brazil are lost sales opportunities for US  auto exports.