Donald Trump is threatening new crippling tariffs on the European Union after trade negotiations stalled.
Financial markets took a hit after the president lambasted Europe and said talks were going ‘nowhere.’
Trump took to Truth Social on Friday to accuse the EU of being ‘very difficult to deal with’ and ‘taking advantage’ of the United States.
He slammed estimates of a $250,000,000 trade deficit between the two countries every year, adding it’s ‘totally unacceptable.’
‘Our discussions with them are going nowhere!’ he proclaimed before threatening to slap a ‘straight 50 percent tariff’ on the EU beginning June 1.
Trump’s comments sent futures markets into an immediate tailspin.
“There is no tariff if the product is created or made in the United States,” he stated, giving European countries a week to revamp their manufacturing methods.
This tariff would impose a larger fee on EU members—including some of the country’s most longstanding military and economic partners—compared to the one Trump has levied on China.
After initially hiking tariffs on Beijing to over 100 percent he has reduced the steepest to 30 percent.
Trump’s criticism of the EU came soon after he attacked Apple, following a White House meeting this week with the tech giant’s CEO, once again condemning its production tactics.
He wrote on Truth Social: ‘I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.’
‘If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!’
Donald Trump is threatening new crippling tariffs on the European Union after trade negotiations have gone south
Trump’s stunning market-changing missives came hours after he dined with top investors in his $STRUMP meme coin during a lavish dinner at his northern Virginia golf club.
Guests were treated to filet mignon and warm lava cake after Trump arrived himself on a military helicopter.
But the White House refused to divulge the guest list amid protests and ethics watchdogs calling it a conflict of interest.
Following Trump’s morning social media messages S&P futures were down 1.5 percent before markets opened in New York. Dow Jones Industrial Average futures also tanked.
The EU declined to comment on Trump’s tariff threat, saying it would wait for a scheduled phone call between EU trade chief Maros Sefcovic and U.S. trade representative Jamieson Greer set for later Friday.
Trump’s EU attack also followed reports that Greenland had inked a deal with a Danish-French consortium, Greenland Anorthosite Mining (GAM), to extract anorthosite, which is critical to the production of aluminum.
Trump, since his election, has described the U.S. acquiring Greenland as an imperative.
The president has long stressed the revenue-raising prospects of tariffs, but such taxes, if imposed, would lead to substantial jumps in what Americans pay for European products, according to multiple studies.
Top EU exports to the U.S. include pharmaceuticals, cars, machinery, petroleum oils, medical instruments, alcohols including beer, wine and spirits, car parts, electrical appliances, and chemicals.
All could see jumps once the June tariffs take effect, even as the White House has been trumpeting a drop in inflation on food, fuel and other goods.
‘We urge the U.S. and EU to continue negotiations to get distilled spirits back to zero-zero tariffs, which will benefit the U.S. hospitality sector and American distilleries,’ said Chris Swonger, CEO of the Distilled Spirits Council Friday, in a statement that revealed concerns of potential reciprocal action.
‘U.S. distillers recently breathed a huge sigh of relief when the EU chose not to impose a 50% tariff on American Whiskey in the steel and aluminum dispute. The EU’s action gave U.S. distillers a glimmer of hope that the U.S. and EU could find common ground and avoid any additional tariff escalation.’
Top European exporters to the U.S. include Germany, Ireland, Italy, France, and the Netherlands.
Trump’s new threat to the EU comes weeks after he struck an emergency trade deal with UK Prime Minister Keir Starmer to ‘save’ the car industry.
The deal, which President Trump said was only possible ‘because of Brexit’, cuts U.S. tariffs on cars imported from the UK from 25 per cent to 10 for the first 100,000 vehicles.
Ministers had feared that leading car makers were preparing to cut thousands of jobs unless the tariffs were reduced.
Trump’s new threat comes weeks after he struck an emergency trade deal with UK Prime Minister Keir Starmer to ‘save’ the car industry
Guests posted photos on social media of Trump’s Thursday night dinner at his Virginia golf club
Protesters outside of Trump’s golf club
The deal was the first struck since President Trump’s ‘Liberation Day’ tariffs stunned the world last month.
Those tariffs caused massive market drops before Trump intervened with a 90-day ‘pause.’
Trump said the speed of the deal with the UK was only possible because of Britain’s status outside the EU.
