President Donald Trump threatened the European Union with a 50% tariff due to stalled negotiations:
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. 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!
U.S. Trade Representative Jamieson Greer meets with his European counterpart later Friday morning.
Last month, European Commission President Ursula von der Leyen announced that the bloc offered Trump a deal concerning tariffs on industrial goods.
German Finance Minister Jörg Kukies called for zero tariffs on imports: “The easiest way to assure balance and fairness is if everyone goes to zero and then we have free trade, efficiency, and economies of scale. The key is to send the signal that we are willing to include reducing tariffs all the way to zero.”
Julian Hinz of the Kiel Institute for the World Economy agreed with Kukies. From DW:
“Dropping tariffs bilaterally between the US and the EU most definitely would be the best outcome. Having cheaper trade between those two economies would benefit both of them, whereas the flip side, if we have tariffs, 20% on each side, that increases costs for both sides. Import tariffs are an import tax that can be lowered very quickly, very easily.”
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