Trump Escalates Trade War With EU

By Elke Porter | Canadian German Business News | May 23, 2025
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In a move that could reignite transatlantic trade tensions, former U.S. President Donald Trump announced Friday that he is recommending a sweeping 50% tariff on all goods imported from the European Union, starting June 1, 2025.

“Our discussions with them are going nowhere!” Trump wrote in a Truth Social post Friday morning. “Their powerful Trade Barriers, VAT Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair lawsuits against American companies... have led to a Trade Deficit with the U.S. of more than $250 billion a year.”

The EU has not issued an official response. European Commission spokesperson Olof Gill said a comment would follow a scheduled call between European Commissioner for Trade Maroš Šefčovič and U.S. Trade Representative Jamieson Greer.

Markets reacted swiftly. European indexes dropped, with Germany’s DAX down 2.4% and France’s CAC sliding 2.2%. The U.S. Dow Jones Industrial Average opened 480 points lower, and the S&P 500 saw its fourth straight day of losses.

Treasury Secretary Scott Bessent defended the administration’s stance, stating on Fox News, “The EU has a collective action problem. We hope this lights a fire under them.”

Trump’s sharp criticism centered on VAT and digital service taxes that disproportionately affect American tech giants. Last year, the U.S. trade deficit with the EU totaled $236 billion, according to the Commerce Department.

The proposed tariff more than doubles the 20% reciprocal tariff briefly imposed in April. While a trade pause remains in effect until July 9, the EU and U.S. have yet to reach a broader agreement—raising fears of a renewed trade war.

Trump emphasized that the tariff would not apply to goods manufactured in the U.S., framing it as an incentive to boost domestic production.

#Trump Tariffs 2025 #EU Trade War #US Politics #Global Markets #Trade Tensions #Economic Impact #WBN News Global #Elke Porter

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