On May 23, 2025, US President Donald Trump announced his intention to impose a 50% tariff on all goods imported from the European Union starting June 1. This decision was explained by the lack of progress in trade negotiations and accusations of unfair trade policies on the part of the EU.
Trump stressed that the EU is “very difficult to do business with” and that the negotiations are “going nowhere.” He also noted that goods produced in the US will not be subject to the new tariffs.
In addition, Trump threatened to impose a 25% tariff on Apple products if the company does not move iPhone production to the US. This statement caused Apple shares to fall 3% in pre-market trading.
Analysts warn that the introduction of 50% tariffs could lead to a 1.7% decline in GDP in Germany and a 4% decline in Ireland over three years. European markets reacted with a decline: the Stoxx Europe 600 index fell 1.7%, and shares of exporters such as Stellantis and Deutsche Bank lost up to 4.6% in value.
The EU is considering retaliatory measures, including the introduction of tariffs on US goods worth up to €95 billion, including Boeing products, cars, and bourbon. Negotiations between EU and US representatives are continuing, but the prospect of a large-scale trade war is causing concern on both sides.
Thus, the measures announced by Trump could significantly exacerbate trade relations between the US and the EU, affecting global markets and the economy as a whole.
