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Trump proposes 50% tariff on EU goods from June 1
Trump's proposed tariff comes as a response to stalled trade discussions with the EU

Trump proposes 50% tariff on EU goods from June 1

May 23, 2025
06:12 pm

What's the story

US President Donald Trump has proposed a whopping 50% tariff on goods imported from the European Union (EU), effective June 1. The proposal comes from what he considers unfair trade practices and a huge trade deficit with the EU. According to him, the EU was created to take advantage of the US through various trade barriers and restrictions.

Trade barriers

Trump cites EU's trade practices as justification

In a post on Truth Social, Trump slammed the EU for its "powerful trade barriers," VAT taxes, and "ridiculous corporate penalties" He also pointed out non-monetary trade barriers and monetary manipulations as contributing factors to the trade deficit of over $250 billion annually. The President said that these practices have made it "very difficult" to deal with the EU.

Trade stalemate

Trump's ultimatum amid stalled trade discussions

Trump's proposed tariff comes as a response to stalled discussions with the EU. He said, "Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% tariff on the European Union, starting on June 1, 2025." The President also clarified that products manufactured in the United States would be exempt from this tariff.

Tariff history

Previous tariff measures and EU's response

In March, the US had already imposed 25% tariff on EU cars, steel, and aluminum. This was followed by 20% tariff on other EU goods in April. The rate was later halved till July 8, giving a three-month window for negotiations for a more comprehensive tariff deal. In response to these measures, the EU had suspended its own plans for retaliatory tariffs.