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BlockNews
Home FINANCE

Trumps Threatens EU With 50% Tariffs: How Will This Affect Markets?

Michael Juanico by Michael Juanico
May 23, 2025
in FINANCE, OPINION, POLITICS
Reading Time: 3 mins read
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  • Trump threatened a 50% tariff on all EU goods starting June 1, calling the bloc unfair on trade.
  • Only the UK and China have reached partial deals so far, with the EU talks reportedly going “nowhere.”
  • Trump also warned Apple of a 25% iPhone tariff if it doesn’t move production to the U.S.

President Trump’s heating up the trade talk again—and this time, the European Union is in the crosshairs. On Friday, he posted on Truth Social that the EU could face a massive 50% tariff on all its products starting June 1, claiming the bloc was “formed to take advantage of the U.S. on trade.”

🚨 TRUMP: “I am recommending a straight 50% tariff on the European Union” 🤯 pic.twitter.com/68RS7Js6UH

— BlockNews (@blocknewsdotcom) May 23, 2025

“The European Union… has been very difficult to deal with,” Trump wrote, adding, “Our discussions with them are going nowhere!”

Leverage or Looming Reality?

Some say it’s just posturing—leverage ahead of more talks. EU trade chief Maros Sefcovic was reportedly set to speak with U.S. Trade Rep Jamieson Greer later that day. But Trump’s tone wasn’t exactly diplomatic.

Just last month, the administration paused its so-called Liberation Day tariffs for 90 days, keeping a blanket 10% rate in place for everyone except China. So far, only the UK has reached a full deal, while China got a temporary reduction to 30% after trade talks in Switzerland.

What Trump Wants (and Doesn’t)

Trump’s frustration seems to center on what he calls “unfair trade practices” by the EU—things like value-added taxes, corporate penalties, trade barriers (monetary and non-monetary), and lawsuits against American companies. He claims these have led to a $250 billion trade deficit with the U.S., calling it “totally unacceptable.”

At a glance, his tariff threats seem meant to pressure EU leaders into striking individual deals. Treasury Secretary Scott Bessent told Fox News, “I’d hope this lights a fire under the EU.”

And time? Well, it might be running out. Trump hinted last week that one-on-one deals might give way to package rates soon, depending on how negotiations go.

UK Deal Sets the “Template”

The UK’s agreement—which includes a 10% tariff and increased access for U.S. agricultural goods—has been held up as a possible blueprint for future deals. According to Trump’s economic team, no deal will dip below the 10% threshold.

Donald Trump Truth Social 05.23.25 05:43 AM EST

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. Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties,…

— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) May 23, 2025

Meanwhile, back in China trade war territory, tariffs hit as high as 145% before being lowered in response to fentanyl-related issues and new agreements.

And if all that wasn’t enough… Trump also said this week he’d slap a 25% tariff on Apple’s iPhones if the company doesn’t bring more manufacturing back to U.S. soil.

So yeah—Europe isn’t the only one feeling the pressure.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: EUJamieson GreerMaros SefcovicPresident Trumptariff
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Michael Juanico

Michael Juanico

Michael is a BSBA Management graduate from Mindanao State University and has been a professional content writer since 2019. He began exploring cryptocurrency in 2021 and has since made blockchain and digital assets his primary focus. For nearly four years, Michael has contributed research and editorial content at Aiur Labs and BlockNews, producing clear and accessible coverage of market trends, trading strategies, and project developments. He is transparent about his personal holdings in Bitcoin, TRON, and select meme tokens, combining writing expertise with hands-on market experience to deliver trustworthy insights to readers.

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