US President Donald Trump has threatened new drastic punitive tariffs on imports from the European Union.

In a post on his social media platform on Friday, he announced that he intends to impose tariffs of 50 percent on goods from the EU starting June 1.

Trump again accused the EU of systematically disadvantaging the United States in trade. “The European Union, which was basically founded to take advantage of the US in trade, is extremely difficult to deal with,” he wrote. He described talks with Brussels as “fruitless.”

EU Commission opts for dialogue instead of escalation

In Brussels, there was initially no comment on the escalation. The EU Commission did not issue an official response. According to Commission sources, they wanted to wait for the phone call between EU Trade Commissioner Maroš Šefčovič and US representatives scheduled for the coming days.

German Federal Minister for Economic Affairs Katherina Reiche called for prudence: “We must negotiate. Further escalation in the transatlantic trade conflict will not produce any winners.” She emphasized the importance of open dialogue with Washington.

Financial markets react nervously

Trump’s announcement did not fail to have an impact on the financial markets: The DAX slipped significantly into negative territory during the course of the day after initially starting off stable. The euro also gave up its early gains. Analysts warned of the economic consequences of a further escalation of the trade dispute between the US and Europe.

Since returning to the White House, Trump has pursued an aggressive trade policy. In addition to China, close partners such as the EU and Canada are also in his sights. Although many of the announced tariffs are currently still suspended to allow room for negotiations, the tone is becoming harsher.

Trump is thus continuing his well-known strategy of using economic pressure as leverage in trade talks.

Credit: APA