Donald Trump makes risky bet by rekindling his trade war with the EU - Financial Times

US president has shifted the focus of his offensive from Beijing to Brussels

President Donald Trump abruptly reignited his global trade wars on Friday, announcing he would impose a steep 50% tariff on all European Union imports beginning June 1, a dramatic move that sent shockwaves through financial markets and threatens to disrupt the world's largest trading relationship.

"The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with," Trump wrote on his Truth Social platform. "Our discussions with them are going nowhere!"

The announcement marked a sharp reversal from the cautious optimism that had emerged in recent weeks after Trump had negotiated preliminary agreements with China and the United Kingdom, temporarily calming fears of an all-out global trade war that had rattled investors since his inauguration.

European officials were blindsided by Trump's announcement, which came with just nine days' notice. The EU is the United States' largest trading partner, with bilateral trade in goods and services totaling nearly $1.3 trillion annually. In 2022 alone, the EU purchased $351 billion in American exports, making it the second-largest market for U.S. goods.

"I'm not looking for a deal," Trump later told reporters at a White House signing event when asked if he expected to negotiate with European leaders before the June 1 deadline. "I mean, we've set the deal. It's at 50%."

U.S. Treasury Secretary Scott Bessent attempted to frame the announcement as a negotiating tactic, telling Fox News that the tariff threat would "light a fire under the EU" after what the administration views as insufficient progress in trade talks. "The president believes that the EU proposals have not been of the same quality that we've seen from our other important trading partners," Bessent said.

But European officials, who declined official comment, privately expressed frustration at what they see as an arbitrary and disproportionate measure. The EU had already been grappling with Trump's earlier moves – a blanket 10% tariff announced in April, plus sector-specific duties of 25% on steel and aluminum imports.