WASHINGTON, May 24 (WSH) — U.S. President Donald Trump issued a startling trade ultimatum on Thursday, declaring that his administration will impose a 50% tariff on all goods imported from the European Union starting June 1, citing a breakdown in trade negotiations. The announcement, posted on Trump’s Truth Social platform, sent shockwaves through global markets and rekindled fears of a full-scale transatlantic trade war.
Disagreements Over Negotiation Strategy Spark Tensions
According to U.S. and European officials, the core of the dispute lies in diverging negotiation styles. The Trump administration is pushing for rapid agreements, while EU leaders adhere to a more procedural, consensus-based approach among all 27 member states. This difference has frustrated U.S. negotiators, who blame the EU for stalling.
“I am not seeking an agreement with the EU,” Trump stated bluntly during an Oval Office briefing. He argued that European nations have benefited disproportionately from access to the U.S. market, especially in autos and agriculture, while American producers face numerous regulatory barriers and punitive fines in Europe.
U.S. Treasury Secretary: “EU Needs a Wake-Up Call”
U.S. Treasury Secretary Scott Bessent told Bloomberg News that the tariff threat is intended to “light a fire” under European negotiators. “Many countries are approaching us in good faith. Talks are moving quickly—with one exception: the EU,” Bessent said, adding that Brussels’ complex internal process hampers effective dialogue.
He further criticized the EU’s collective bargaining model: “Some member states don’t even know what their own negotiators are agreeing to.” He praised progress with other partners such as the UK, China, and several Asian nations, signaling that the U.S. is ready to sign multiple major deals in the coming weeks.
EU Responds: “Ready to Defend Our Interests”
In response, European Commission Executive Vice President Maroš Šefčovič held emergency calls with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. In a public statement, Šefčovič stressed that EU-U.S. trade relations “must be built on mutual respect, not threats,” and vowed that the EU is “fully engaged in constructive negotiations but also ready to defend its interests.”
Sources inside Brussels say the EU has long prepared contingency measures in case of a breakdown. These include a retaliatory tariff package targeting up to €95 billion worth of U.S. goods, such as bourbon, aircraft, and automobiles. This would follow an earlier €21 billion set of duties levied in response to Trump’s steel and aluminum tariffs in 2024.
Markets React, Trade War Looms
European and U.S. markets responded sharply to the announcement, with key indices slipping amid renewed trade war concerns. While one EU diplomat downplayed the move, saying “we do not set policy based on a Truth Social post,” others warned that Trump’s declaration signals a serious shift toward unilateral trade action.
Trump has long accused the EU of unfair trade practices. In February, he described the bloc as “established to take advantage of the United States,” and has repeatedly criticized European digital regulations, antitrust fines, and low defense spending.
Outlook: High Stakes, Tight Timeline
With the June 1 deadline approaching and U.S. elections on the horizon, analysts predict that Trump may continue to use aggressive trade rhetoric as a key campaign theme. If neither side yields, the world could witness one of the largest escalations in U.S.-EU trade tensions in recent history.
