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Transatlantic tensions rise as EU calls Trump’s new tariff threat ‘unconstructive’

یوسف مهراد

May 24, 2025 - Updated on August 2, 2025
Reading Time: 5 mins read
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Transatlantic tensions rise as EU calls Trump’s new tariff threat ‘unconstructive’

Photo: Photo: Istock

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U.S. President Donald Trump reignited global trade tensions on Friday (May, 23), threatening to impose steep new tariffs on European Union goods and Apple products, a move that rattled financial markets and drew sharp criticism from EU officials.

Trump announced plans to slap a 50% tariff on all EU imports starting June 1, citing frustration over slow progress in trade talks with Brussels. The EU exported about €500 billion ($566 billion) worth of goods to the United States last year, led by Germany (€161 billion), Ireland (€72 billion) and Italy (€65 billion), with key exports including pharmaceuticals, cars, chemicals and aircraft.

Analysts warn the 50% tariff could sharply raise consumer prices on items like German cars and Italian olive oil. Kathleen Brooks, a market strategist, said Trump’s tense relationship with EU leaders “heightens the risk of a prolonged trade war.”

Maroš Šefčovič, the EU’s trade chief, called the tariff threat “unconstructive” after speaking by phone with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, stressing the bloc seeks an agreement based on “mutual respect.” Dutch Prime Minister Dick Schoof described the move as a negotiating tactic, noting previous tariff swings in U.S.-EU talks.

Trump also targeted Apple, threatening a 25% tariff on all imported iPhones and warning similar measures could hit Samsung and other smartphone makers. He said U.S.-sold iPhones should be produced domestically rather than in India or other countries, adding that tariffs could be avoided if factories were built in the United States.

The announcements triggered immediate market volatility: U.S. and European stock indices fell, the dollar weakened, gold prices climbed and U.S. Treasury yields dropped amid fears of slower growth.

Trump had paused most punitive tariffs in April after investor sell-offs of U.S. assets, retaining a 10% base tariff on most imports and reducing Chinese tariffs from 145% to 30%. Friday’s threats signal a return to his more aggressive trade posture as Washington pushes to bring manufacturing back home ahead of the 2026 U.S. elections.

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