Trump's tariff threat rattles European markets, sparks backlash
The President of the United States, Donald Trump, on Friday threatened the European Union with a significant increase in tariffs on EU goods. He stated that the current negotiations "are going nowhere." There is a response from the German finance minister.
Donald Trump announced on Friday the implementation of a 50 per cent tariff on goods imported from the European Union, starting from June 1.
"We do not need more provocations, just serious negotiations," said German Finance Minister Lars Klingbeil in an interview for the Sunday edition of "Bild."
The head of the German department added that "American tariffs threaten the American economy just as much as they threaten the German and European economies." He noted that he had raised this issue with his American counterpart Scott Bessent.
EU Trade Commissioner Maroš Šefčovič reacted to Trump’s statement by saying that the Union is acting "in good faith" towards a trade agreement with the USA based on respect, not threats.
Trump threatens the European Union
Donald Trump issued a threat against the EU on the social media platform Truth Social. The statement caused immediate declines in European stock markets. For example, stock indices in Germany and France plummeted by 2 per cent, while shares in the UK lost more than 1 per cent of their value.
Earlier, the British newspaper "Financial Times" reported that negotiators representing the Trump administration are pressing the EU to unilaterally reduce tariffs on American goods.
The European Union is the second-largest trading partner of the United States, right after China. In recent years, the value of American exports of goods to the EU exceeded 350 billion dollars (480 billion Canadian dollars), while imports from the Union amounted to about 550 billion dollars (755 billion Canadian dollars). The potential imposition of high tariffs could significantly disrupt this trade exchange.
