Transatlantic economic relations are on the brink of a possible breakdown: US President Donald Trump made a surprise announcement on Friday that he would impose a 50% punitive tariff on all imports from the European Union starting June 1, 2025.

In a statement on his Truth Social platform, Trump justified the move by citing the failure of talks: “Our negotiations with them are getting nowhere,” the 78-year-old wrote, accusing the EU once again of “systematically undermining American interests,” as reported by the Reuters news agency.

The announcement took Brussels by surprise, especially since there had been hopes for a détente just a few days earlier. At the summit meeting in Rome, Trump’s vice president, J. D. Vance, had said that he hoped the talks with EU Commission President Ursula von der Leyen and Italian Prime Minister Giorgia Meloni would be “the beginning of long-term trade negotiations.” Now Brussels is on red alert.

EU counters with its own list

According to sources within the EU Commission, a list of possible counter-tariffs has been in the works for months. It includes not only traditional export goods such as cars, aircraft, and vehicle parts, but also agricultural products, raw materials, dental equipment, condoms, and even human hair for wigs. Already decided: An initial counterattack will include tariffs on Harley-Davidson motorcycles and jeans. In a second step, beef, poultry, and citrus fruits could follow, and later nuts and soybeans.

The BBC reports that a much tougher measure is also on the table in Brussels: taxes on digital services provided by US companies such as Google, Amazon, Facebook and X (formerly Twitter) – a move that could hit the US harder than traditional tariffs.

Political reactions in Europe

While the EU Commission initially waited and hoped for a clarifying discussion between Trade Commissioner Maroš Šefčovič and US negotiator Jamieson Greer, leading European politicians made clear statements. Markus Ferber (CSU) called Trump’s announcement a “nail in the coffin for the competitiveness of the US economy.”

For Daniel Caspary, chairman of the CDU/CSU group in the European Parliament, this is a “trade policy disaster.” The Greens also responded with sharp criticism: MEP Anna Cavazzini, spokesperson for transatlantic trade relations, spoke in the Süddeutsche Zeitung of an “attempt at blackmail” to which the EU must not give in under any circumstances.

Markets react nervously

The financial markets reacted promptly to the escalation: According to The Guardian, the DAX fell by 1.6% on Friday, the Dow Jones recorded a weekly loss of 2.2%, and even tech stocks such as Apple lost significant ground – a sign that investors are expecting a serious conflict.

Negotiations not yet completely failed?

Despite the escalation, some EU member states continue to hope for a diplomatic solution. The Polish government, which currently holds the EU Council Presidency, said that talks with the US were not yet over. Trade Commissioner Šefčovič also appeared outwardly willing to negotiate, but at the same time warned against underestimating Europe’s determination.

Image:
European Parliament from EU, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons