The European Commission has requested urgent clarification from Washington after U.S. President Donald Trump proposed a sweeping 50% tariff on European Union imports, set to begin June 1. The move sent shockwaves through global markets and raised fears of a renewed transatlantic trade conflict.
European Trade Commissioner Maroš Šefčovič is scheduled to speak with U.S. Trade Representative Jamieson Greer later today to address the tariff threat. Until then, Brussels has declined to make any formal comment.
President Trump announced the proposed tariffs in a post on his Truth Social platform, accusing the EU of exploiting the United States. “The European Union… has been very difficult to deal with. Our discussions with them are going nowhere!” he wrote. Trump also floated the idea of a separate 25% tariff on Apple iPhones sold, but not manufactured, in the U.S., despite the country lacking domestic smartphone production.
The twin threats triggered immediate market turmoil. The S&P 500 dropped 0.9%, the Nasdaq shed 1.5%, and Apple shares fell 2.5% in early trading. European stock markets also slid, with the STOXX 600 down 1.1%, while the euro lost ground and government bond yields across the eurozone declined.
Economists warned that the move marks a sharp escalation in trade tensions. Holger Schmieding, chief economist at Berenberg Bank, described it as “a major escalation” that would force the EU to respond, with potentially damaging consequences for both economies.
The EU already faces a 25% tariff on U.S. imports of steel, aluminium, and cars, and a 10% tariff on most other goods — a levy set to rise to 20% after July 8, following the end of a temporary pause. Washington justifies the tariffs as a corrective measure to address a near €200 billion goods trade deficit with the EU, despite enjoying a surplus in services.
Brussels has offered compromise solutions, including mutual zero-tariff agreements on industrial goods, increased EU purchases of U.S. liquefied natural gas and soybeans, and collaboration on steel overcapacity.
Polish deputy economy minister Michal Baranowski, whose country holds the EU’s rotating presidency, suggested Trump’s tariff threat may be a negotiation tactic. “Some negotiate behind closed doors, others more in front of cameras,” he remarked.
Irish leaders condemned the proposal. Taoiseach Micheál Martin called it “enormously disappointing” and warned it would “grievously damage” transatlantic trade. Tánaiste Simon Harris emphasized the importance of “calm, measured and comprehensive dialogue,” stating that tariffs “push up prices for consumers and businesses” on all sides.
The Šefčovič-Greer call is expected to shape the EU’s response ahead of a possible high-level meeting in Paris in early June. The European Commission insists it prefers a negotiated outcome but remains prepared to implement countermeasures if talks fail.
