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By Martha McHardy and Shane Croucher
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U.S. President Donald Trump said he was recommending a 50 percent tariff on the European Union (EU) from June 1 because trade negotiations are "going nowhere".
Trump said the EU "has been very difficult to deal with" and that the U.S. trade deficit with the bloc is "totally unacceptable".
A spokesperson for the European Commission told Newsweek it would not be commenting until after a scheduled call later on Friday between trade officials.
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Why It Matters
The move by Trump marks a fresh escalation in his trade row with the EU, which he has previously accused of being created to "screw" the U.S.
The president has long touted tariffs as a way to protect U.S. consumers from unfair trade practices and would lead to a boost in U.S. manufacturing. Economic experts have pushed back saying that tariffs often lead to higher costs passed on to consumers.
What To Know
The two sides had been negotiating on a new agreement amid Trump's pause on his reciprocal tariffs. The EU has also suspended its retaliatory measures.
"Our discussions with them are going nowhere!" Trump posted to Truth Social on Friday morning.
"Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!"
Trump also threatened to impose a tariff of at least 25 percent on Apple if its iPhones sold in the U.S. are not manufactured in the country.
Trump wrote on social media that he had told Apple CEO Tim Cook that his company would face a tariff hike if it continued to use foreign construction sites to assemble its technology.
"I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or any place else," Trump wrote.
"If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank you for your attention to this matter!"
Stock markets tumbled in response to the announcements. Futures tied to the S&P 500 dropped 1.5 percent ahead of the opening bell in New York, while the Stoxx Europe 600 index declined by 1.7 percent..
Since returning to the White House, Trump has aggressively pursued a protectionist trade agenda, most notably through the introduction of the so-called "Liberation Day" tariffs on April 2.
That order imposed a flat 10 percent duty on almost every import starting April 5, while goods that meet USMCA rules of origin from Canada and Mexico remain exempt.
A second tier of "reciprocal" tariffs—applied to nearly 60 trading partners and calculated from each country's 2024 trade surplus, then deliberately halved to yield discounted rates of 11-50 percent—was slated to take effect on April 9.
However, market volatility, particularly in equities and foreign exchange, led the White House to suspend these country-specific surcharges for 90 days for all nations except China. As a result, most imports continue to face only the baseline 10 percent tariff.
What Happens Next
A temporary halving of reciprocal EU duties remains in effect through July 8, after which the full 20 percent rate will resume on July 9, unless extended.
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