Trump's tariff threat: EU markets tumble as tensions rise
The President of the United States, Donald Trump, threatened the European Union on Friday with a significant increase in tariffs on European goods. He stated that the current negotiations "are going nowhere." The German finance minister responded to this development.
Trump announced the plan to introduce a 50% tariff on goods imported from the European Union, effective June 1st.
"We don’t need further provocations, only serious negotiations," said German Finance Minister Lars Klingbeil in an interview with the Sunday edition of "Bild."
The head of the German department added that "American tariffs threaten the U.S. economy just as much as the German and European economies." He noted that he had addressed this issue with his American counterpart, Scott Bessent.
EU Trade Commissioner Maroš Šefčovič reacted to Trump’s statement by asserting that the Union is acting “in good faith” towards a trade agreement with the USA based on respect, not threats.
Trump threatens the European Union
Donald Trump expressed his threat towards the EU on the social media platform Truth Social. This announcement led to immediate drops in European stock markets. For instance, stock indices in Germany and France rapidly decreased by 2%, while shares in the United Kingdom lost over 1% of their value.
Earlier, the British daily "Financial Times" reported that negotiators representing the Trump administration are pressing the EU to unilaterally lower tariffs on American goods.
The European Union is the second-largest trading partner of the United States, right after China. In recent years, the value of U.S. goods exported to the EU has exceeded $350 billion, while imports from the Union have amounted to about $550 billion. The potential imposition of high tariffs could significantly disrupt this trade relationship.
