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Donald Trump has threatened to slap a 50% tariff on all imports from the European Union starting June 1. He clearly thinks this move will force Brussels into making major trade concessions, even as investors warn it could wipe out the modest global stock market recovery. Until now, talks between Washington and Brussels have made only slow progress. But Trump’s sudden announcement that he will impose heavy duties on EU goods has shifted the negotiating ground. If no agreement is reached, he plans to begin on June 1. FT reported that financial markets have been at ease recently due to Trump’s friendlier trade talks with Britain and China. Now, investors worry that a fresh tariff war with Europe could undo the recovery in global stocks and strain relations with long‐time allies. “It’s a classic Trump bullying tactic,” said Bill Reinsch, a trade expert at the Center for Strategic and International Studies in Washington. “If he doesn’t get what he wants, he pushes back with threats and waits to see what happens.” Reinsch added that the aim is to make European leaders “back down,” though he doubts they will. On Friday afternoon in the Oval Office, Trump insisted he was in no rush to strike a bargain before the deadline. “That’s the way it is,” he declared, reaffirming his plan to proceed with the 50% tariffs unless Brussels agrees to US demands. US Treasury Secretary Scott Bessent told Fox News that the tariffs were meant to “light a fire under the EU.” He hinted there could be room to talk both before and after the official start date. A note from Oxford Economics said the threat of tariffs “will keep policy uncertainty elevated” since the administration may use duties as leverage any time talks stall. It remains unclear what the US…

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Filed under: News - @ May 24, 2025 5:23 pm