‘Our talks going nowhere’: Donald Trump threatens to impose 50% tariff on EU imports starting June 1

US President Donald Trump on Friday threatened to impose a 50 per cent tariff on goods imported from the European Union, citing that the group of nations has been “very difficult to deal with”.

In a post on his social media platform Truth Social, Trump accused the EU of being primarily formed with the purpose of taking advantage of the United States on trade.

“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with. Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans 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 said.

Donald Trump further said that his administration's discussions with the EU was going ‘nowhere’ and threatened to impose a 50 per cent tariff on products imported from the nations starting June 1.

“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter,” he said.

Stocks decline after Trump's threat

Futures for the S&P 500 Index fell 1.1 per cent while Nasdaq 100 futures declined 1.3 per cent Friday morning after Trump’s threat, Bloomberg reported.

Donald Trump threatened the EU with 50 per cent tariffs minutes after threatening to impose a 25 per cent levy on Apple iPhones that are not made in the US but sold there.

Donald Trump-EU talks

Trump’s latest trade posturing comes after the EU, earlier this week, shared a revived trade proposal with the US in a bid to jump-start their talks.

The new framework includes proposals that take into account US interests, including international labor rights, environmental standards, economic security and gradually reducing tariffs to zero on both sides for non-sensitive agricultural products as well as industrial goods, according to people familiar with the matter.

The proposal also outlined areas where the US and EU could cooperate such as mutual investments and strategic procurement in energy, artificial intelligence and digital connectivity.

But there were signals the US was unhappy with the offer. Commerce Secretary Howard Lutnick on Wednesday said at an Axios event that some trade negotiations had proved “impossible.”

“Like the European Union — it’s just very difficult because, you know, Germany would like to make a deal, but they’re not allowed,” Lutnick said.

The EU is also moving forward with preparing countermeasures if negotiations fail to produce a satisfactory outcome. The trade bloc has put together plans to hit €95 billion of US exports ($107 billion) with additional tariffs in response to Trump’s “reciprocal” levies and 25 per cent tariffs on cars and some parts.

(With Bloomberg inputs)