- Trump threatens 50 percent tariff on European imports, targeting vehicles and parts.
- The President said talks are stalling and the tariff could take effect as soon as June 1.
- If Trump follows through, it could impact $45 billion worth of automotive imports.
President Donald Trump is threatening the European Union with a crippling 50% tariff, which could go into effect on June 1. This could prove devastating to automotive imports, but it remains unclear if he’ll follow through with his threat as he’s only “recommending” hiking tariffs at this point.
In a post on Truth Social, Trump claimed the European Union was “formed for the primary purpose of taking advantage of the United States on trade” and has been “very difficult to deal with.” He went on to claim Europe’s taxes, rules, trade barriers, and lawsuits against American companies have led to a trade deficit of more than $250 (£185 / €220) million. Trump stated that deficit is “totally unacceptable” and negotiations are “going nowhere!”
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The news sent markets into a panic as the threat implies Trump’s trade war is heating back up. This comes after the administration has repeatedly backed down and has only achieved one trade deal of note.
While it’s hard to predict what will happen next, The Guardian reported the United States imposed a 20% reciprocal tariff on most goods from the European Union on April 2, but later cut that rate in half to allow time for discussions. However, it left a 25% tariff on aluminum, steel, and automotive parts in place.
NBC News reports the European Union is the United States’ second-largest trading partner behind China. The U.S. imports $550 (£406 / €484) billion worth of goods, while exporting more than $350 (£259 / €308) billion. Europe’s top exports are pharmaceuticals, vehicles, and automotive parts. The latter two were valued at more than $45 (£33 / €40) billion in 2024.
