Trump Proposes 50% Tariff on European Union
President Trump has suggested imposing a 50% tariff on goods from the European Union, effective June 1, 2025.
Background
This announcement follows complaints regarding stalled trade negotiations and a previous threat to tax Apple if they don't manufacture iPhones in the United States. According to Trump, the EU has been difficult to negotiate with due to trade barriers, VAT taxes and other issues which have led to a significant trade deficit with the U.S.
"Our discussions with them are going nowhere!" Trump stated.
Impact
The proposal aims to incentivize domestic production, eliminating tariffs for products built or manufactured in the United States. Financial markets reacted negatively to the news, with stock futures declining.
