Trump threatens 50% tariffs on European Union goods amid trade tensions

In a recent escalation of trade tensions, U.S. President Donald Trump announced plans to impose a 50% tariff on goods imported from the European Union, with the tariffs set to begin on June 1, 2025. This announcement coincided with the president’s criticism of the European Union’s trade practices, stating that the negotiating process had become increasingly difficult. This threat resulted in a sharp decline in U.S. stock markets, particularly affecting technology stocks, including Apple, which faced additional tariffs on iPhones not manufactured in the United States. Trump's tariff threats created an environment of uncertainty and anxiety among investors, leading to market fluctuations and warnings from financial analysts about the potential economic fallout. The proposed tariffs on the EU raise concerns about retaliatory measures that could exacerbate economic challenges in both the U.S. and the EU, further complicating trade relations that have shown signs of recovery in previous months. Analysts warn that such drastic measures could not only harm bilateral trade but also impact overall economic growth in both regions, jeopardizing jobs and escalating inflationary pressures in the U.S.