In a sharp escalation of trade tensions, former U.S. President Donald Trump announced on Friday via Truth Social that he is recommending a 50% tariff on all goods imported from the European Union, effective June 1, 2025. The proposed tariff would not apply to products manufactured within the United States.
Trump cited ongoing frustrations in trade negotiations with the EU, describing the bloc as “formed for the primary purpose of taking advantage of the United States on trade.” He pointed to a persistent annual trade deficit of over $250 billion with the EU, and accused them of employing unfair trade practices including excessive trade barriers, VAT taxes, corporate penalties, and monetary manipulations.
“Our discussions with them are going nowhere,” Trump stated, adding that the EU has consistently been difficult to deal with. The post signals a potential shift toward more protectionist policies if Trump were to return to office.
Following the announcement, the U.S. dollar came under pressure, with the USD Index falling 0.45% to 99.45 at the time of the post. Markets appear to be reacting to concerns over rising trade tensions and the possible impact on international commerce.