Donald Trump has threatened to impose 50 percent tariffs on the EU saying negotiations between the EU and US are “going nowhere” in an angry early morning post of social media.
The US President has previously imposed, and then quickly put on pause, 20 percent tariffs on most EU goods.
The EU has been using the 90-day pause to try and negotiate away the tariffs with the US.
That 90-day pause is due to run until 9 July. But on Friday, Trump posted on his social media network:
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
The EU’s Trade Commissioner, Maroš Šefčovič, is due to speak with his US counterpart later this afternoon.
Ireland’s EU Commissioner, Michael McGrath, said time is running out to reach a deal.
“There is a sense of urgency because the clock is ticking.
We want to get a fair, negotiated settlement agreed as soon as possible in the interests of European businesses, but also in the interests of European consumers because we all know that a tit-for-tat trade war only results in loses.
It hurts businesses, it hurts consumers and ultimately it will cost jobs.”
The UK has already done a deal with the US, but has had to accept that US 10 percent tariffs remain in place.
The EU has repeatedly said it wants a deal with “zero for zero tariffs”.
The Chair of the Internal Market Committee in the European Parliament, Anna Cavazzini, says that the EU should stand firm.
“The EU is in the eye of Trump’s tariff storm. Trump has developed such an obsession with Europe because we are the democratic counter-model to his authoritarian restructuring.
The EU must remain steadfast and not give in to Trump’s unpredictable manoeuvres and attempts at blackmail.
On the contrary: With one of the world’s largest markets, we have a hefty asset that is extremely important to the US economy.
This weight must be brought to bear in the negotiations. Trump must realize that the costs of a no-deal scenario will have serious consequences for the US.
Therefore, the EU must maintain its countermeasures and prepare further, tougher responses to the current US tariff arbitrariness. The EU’s response must target where Trump and his followers are hit hardest. The likelihood of its use increases significantly with announcements like Trump’s today.”
The European Trade Union Institute (ETUI) has calculated that up to 720,000 jobs could be lost in the European Union if Trump goes ahead with his previously-threatened 20 percent tariffs.
The ETUI warns that manufacturing will be the hardest hit sector.
“The EU has already experienced a decline of nearly three million manufacturing jobs between 2008 and 2024, the threat comes not just from the number of potential job losses but from a further erosion of Europe’s industrial base”, warned Andrew Watt, General Director of the ETUI.
Responding to Trump’s threat to impose 50 percent tariffs on the EU at the end of next week, Tánaiste Simon Harris said:
“Ireland’s consistent position and that of the EU is that we need a substantive, calm, measured and comprehensive dialogue with the United States.
Tariffs are a bad idea. They’re bad for Ireland, the EU, and the US. They push up prices for consumers and businesses. We have built a relationship of prosperity, jobs and investment based on working together and trading together.
Negotiations remain the main focus for both the EU and Ireland and our deep and enduring relationship with the United States merits a more sustained and substantive engagement in the period ahead in a bid to bring about a negotiated settlement.
I continue to keep in close contact with the European Commission, with colleagues across the EU and with industry as we continue to seek to navigate the current challenges. A negotiated solution remains very clearly the goal and the preferred outcome.”
Whilst across-the-board 20 percent tariffs are on pause, 25 percent sector-specific tariffs on EU steel, aluminium and cars remain in place.
The EU has readied retaliatory counter tariffs, but is hold fire whilst trade negotiations with the US continue.