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The European Union has issued a pointed rebuke to U.S. President Donald Trump’s latest tariff threat, with EU Trade Commissioner Maroš Šefčovič calling for “mutual respect” and vowing to defend European economic interests if a 50% import tax is imposed on EU goods.
The warning came hours after Trump declared that starting June 1, his administration would unilaterally impose a 50% tariff on all European goods entering the United States unless trade talks show immediate progress.
“The EU is fully engaged, committed to securing a deal that works for both,” Šefčovič said after speaking with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. “EU-US trade is unmatched & must be guided by mutual respect, not threats.”
Trump’s Hardline Stance
President Trump, speaking via social media and at a press event Friday, said: “I’m not looking for a deal. We’ve set the deal.” While he hinted that major European investments in U.S. manufacturing could delay the tariffs, he largely dismissed ongoing negotiations as ineffective.
Trump’s rhetoric underscores a widening rift in transatlantic trade. Earlier this year, his administration levied a 20% tariff on most EU goods, later paused until July 8, while maintaining 10% base duties and 25% tariffs on European steel and aluminum.
EU’s Countermeasures Ready
European leaders responded swiftly. Irish Taoiseach Micheál Martin called for de-escalation, while France and Germany emphasized their readiness to act if talks break down.
- France’s Trade Minister: “We maintain our line de-escalation, but we are ready to respond.”
- Germany’s Economy Minister: “We must do everything to reach a deal.”
- The Netherlands’ Prime Minister noted tariffs “go up and down,” signaling strategic patience.
The EU has suspended, but not withdrawn, a retaliatory 25% tariff on $20 billion in U.S. goods and is currently consulting on measures impacting another $100 billion in American imports.
High Stakes for Global Trade
The potential impact of a tariff war between the world’s largest economic partners is profound. Last year, the EU exported over $600 billion in goods to the U.S. and imported $370 billion, according to U.S. data.
Markets reacted negatively, with major European indices falling over 1.5% and the S&P 500 dropping 0.7%.
Trump’s trade policies continue to rattle allies and global investors alike. His team says they aim to rectify an “unfair” trade imbalance and decouple the global supply chain from Chinese dominance. Critics fear a disruptive wave of protectionism and retaliatory nationalism.
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