Date: May 22, 2025
By: BlogHear News Desk
The European Union has reaffirmed its commitment to securing a fair trade agreement with the United States, emphasizing that negotiations must be based on “mutual respect, not threats”. The response came after U.S. President Donald Trump threatened to impose a 50% tariff on all EU goods entering the U.S., starting June 1.
In a statement issued after a call with U.S. officials, EU Trade Commissioner Maros Sefcovic said:
“The EU is fully engaged and committed to securing a deal that works for both sides. EU-U.S. trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests.”
Trump Presses Ahead with Tariff Plans
President Trump expressed frustration over what he sees as slow progress in EU-U.S. trade talks. Posting on social media Friday, he wrote:
“Our discussions with [the EU] are going nowhere.”
He added: “There will be no tariffs for products built or manufactured in the U.S. I’m not looking for a deal — we’ve set the deal.”
However, the President hinted he could consider delaying the tariffs if a major European company invests significantly in the U.S. economy.
The EU is among America’s largest trading partners, exporting over $600 billion in goods to the U.S. in 2024 and importing around $370 billion, according to U.S. government data.
EU Leaders Push for De-escalation
European leaders reacted swiftly to Trump’s renewed tariff threats, warning of the potential consequences of escalating trade tensions.
- Ireland’s Prime Minister Micheál Martin: “We do not need to go down this road. Negotiations are the best and only sustainable way forward.”
- France’s Trade Minister Laurent Saint-Martin: “We are maintaining the same line: de-escalation, but we are ready to respond.”
- Germany’s Economy Minister Katherina Reiche urged the EU to “do everything” to reach a resolution.
- Dutch Prime Minister Dick Schoof said he supports the EU’s strategy, noting: “We have seen before that tariffs can go up and down in talks with the U.S.”
Ongoing Disputes and Tariff History
In early April, Trump announced new “reciprocal tariffs” across a wide range of countries, including a 20% tax on most EU goods. Although the U.S. paused the full increase for three months (until July 8), a 10% baseline tariff remains in place.
Meanwhile, a 25% U.S. tariff on EU steel and aluminum imports continues. In retaliation, the EU prepared its own tariff package — a 25% duty on €18 billion worth of U.S. goods — but has temporarily put the measure on hold.
Brussels is also consulting on broader actions affecting up to €95 billion worth of U.S. imports, if the situation escalates.
Trade Deficit and U.S. Concerns
Trump has repeatedly pointed to the U.S. trade deficit with Europe, especially in automotive and agricultural goods, as a key reason for his tariff push.
He also threatened a 25% tariff on iPhones and other smartphones not manufactured in the U.S., singling out Apple and other tech firms as part of his push for domestic production.
Markets React to Uncertainty
The financial markets responded negatively to the developments:
- S&P 500 closed down 0.7%
- Germany’s DAX fell over 1.5%
- France’s CAC 40 also dropped more than 1.5%
Economic analysts warn that a full-scale tariff implementation between the EU and U.S. could shock global markets and threaten ongoing diplomatic and business ties.
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