US President Donald Trump threatened to impose a 50% tariff on imports from the European Union, accusing the 27-member trade bloc of delaying trade negotiations.

Complaining that negotiations with the EU were “going nowhere,” Trump said on Truth Social that he was recommending “a direct 50% tariff on the European Union, effective June 1, 2025.”

Wall Street futures fell after the news.

If the new tariffs take effect, they would dramatically increase the current 10% base U.S. tax on goods coming from the EU and intensify economic tensions between the world's largest economy and the largest trading bloc.

Last month, Trump imposed sweeping tariffs on most countries, introducing high tariffs on several trading partners, including the EU, and sectoral measures against cars, steel, and aluminum that are not produced in the US.

Markets slumped after the announcement, and a few days later the US president announced a 90-day suspension of tariffs on most countries to allow for negotiations, while maintaining the lower base rate of 10%.

Negotiations between the US and the EU are not going as smoothly as with other partners, with the EU recently threatening to impose tariffs on US goods worth nearly €100 billion if the current negotiations do not lead to a reduction in tariffs on European goods.

In a social media post early on May 23, Trump wrote that the EU was “created for the primary purpose of taking advantage of the US in trade” and criticized the “difficult” negotiations that are taking place. | BGNES