Trump Issues Surprise Threat of 50% Tariffs on EU Imports

Donald Trump yesterday said he would impose a 50% tariff on imports into the US from the European Union from June 1 because trade talks were "going nowhere".

- Phillip Inman, Dominic Rushe, New York, Dan Milmo

In a surprise announcement, the US president posted on his Truth Social platform that his battle to secure concessions from Brussels had stalled. He accused the EU of taking advantage of the US on trade, saying: "Our discussions with them are going nowhere! Therefore I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025."

Stock markets slumped in response to the post, with the S&P 500 down by 1% and the tech-heavy Nasdaq down 1.3% on opening. The STOXX Europe 600 index fell by 1.7%. In London, the FTSE 100 closed down 0.2% after initially dropping by 1.5%.

Germany's carmakers were hard hit, with BMW down 3.7%, Volkswagen off 2.6%, and Mercedes-Benz 4% lower. The US imposed a 20% "reciprocal" rate on most EU goods on 2 April but halved this a week later until 8 July to allow time for talks.