EU warns of retaliation as Trump threatens 50% tariffs on European exports
Speaking after a call with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, EU Trade Commissioner Maroš Šefčovič emphasized the bloc's desire to reach a deal rooted in 'mutual respect, not threats.'
'The EU is fully engaged and committed to securing a trade deal that works for both sides,' Šefčovič said, adding, 'We stand ready to defend our interests.'
Trump, growing increasingly frustrated with the pace of negotiations, said Friday that he was 'not looking for a deal' and had already 'set the deal.'
He reiterated his plan to enact the tariffs but suggested that major new investments in the U.S. from European firms could influence a delay.
The proposed tariffs come amid strained talks and would impact more than $600 billion in goods the EU exports to the U.S. annually.
Trump defended the plan by pointing to what he claims is an unbalanced trade relationship, citing the EU's surplus and policies he says disadvantage American farmers and manufacturers.
European leaders swiftly condemned the move. Irish Prime Minister Micheál Martin urged restraint, saying, 'We do not need to go down this road. Negotiations are the best and only sustainable way forward.'
France's Foreign Minister Laurent Saint-Martin echoed the call for de-escalation but warned that Europe is 'ready to respond,' while Germany's Economy Minister Katherina Reiche stressed the need to 'do everything' to avoid an all-out trade war.
The Dutch Prime Minister Dick Schoof voiced support for a unified EU position, noting that tariff rhetoric with Washington has fluctuated in the past.
The latest threats follow Trump's April announcement of 'reciprocal tariffs' on dozens of countries, including a 20% tariff on most EU goods. Though he temporarily paused those increases until July 8 to allow negotiations to proceed, a baseline 10% tax remains in effect.
Meanwhile, the EU has held off on its own retaliatory tariffs, including a proposed 25% levy on $20 billion worth of U.S. goods and additional measures under consultation targeting $95 billion in American imports.
Trump has also reignited concerns in the tech sector, warning Apple that a 25% import tax could be imposed on iPhones not manufactured in the U.S., later broadening the threat to include all smartphones.
Markets responded nervously to the latest escalation. The S&P 500 closed down 0.7% on Friday, while Germany's DAX and France's CAC 40 both fell more than 1.5%.
While some of Trump's advisors, including Heritage Foundation economist Stephen Moore, floated the idea of negotiating bilateral deals with individual EU countries, Brussels has reaffirmed that all talks with Washington will continue on a bloc-wide basis. — BBC
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