Trump Announces 50% Tariffs on EU Imports Starting June 1

US President Donald Trump has announced a sweeping new tariff plan, stating he will impose a 50% tax on all goods imported from the European Union beginning 1 June 2025. The move significantly escalates tensions in an ongoing trade dispute with the EU.

In a social media post on Friday, Trump said, “Our discussions with them are going nowhere!” and confirmed the hefty tariff will be enforced next month. This follows an earlier proposal of a 20% duty, which was reduced to 10% in hopes of reaching a deal before 8 July. However, with negotiations stalling, Trump is pressing ahead with tougher measures.

The president also issued a pointed warning to Apple, threatening a minimum 25% tariff on iPhones not manufactured within the United States. “I have long ago informed Tim Cook of Apple that I expect their iPhones sold in the United States to be manufactured here, not in India or anyplace else,” Trump stated. “If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.”

These tariffs are part of Trump’s broader strategy to reduce the US trade deficit and encourage domestic manufacturing. In 2024, the US imported $605.8bn worth of goods from the EU, compared to $370.2bn in exports to the bloc.

Trump has repeatedly expressed dissatisfaction with EU trade policies, particularly concerning automotive exports. German car manufacturers have often been a focus of his criticism, with the US importing significantly more vehicles from Europe than it sends overseas.

The announcement has already affected financial markets, with all major European indices, including the UK’s FTSE 100, falling in response to fears of a deepening trade rift.

As of now, the EU has not issued a formal response to Trump’s latest tariff threat.