DJT Sends Stock Markets Down with Threat of 50% Tariffs Against EU

Donald Trump triggered a fall in European stock markets by posting in his social media Truth Social to impose 50% tariffs against the European Union, starting 1 June 2025, due to what he regards as insufficient progress in negotiations.

The USA’s Dow Jones index opened down by 480 points (1.15%). In Europe, the STOXX 600 index fell 1.7%, Germany’s DAX fell 2.4%, France’s CAC fell 2.2% and London’s FTSE fell 1%.

Trump imposed a 20% tariff against the EU in April, then paused it until 9 July for negotiations. Since that pause, he has only achieved a new trade deal with the United Kingdom which is no longer part of the EU.

Commerce Department data says last year the USA’s trade deficit with the EU was $236 billion. Trump also dislikes the EU’s value added taxes and digital service taxes.

European Commission President Ursula von der Leyen noted that the EU offered a “zero-for-zero” tariff deal, which Trump rejected. The EU wants a solution that is fair for both sides. “But if and where negotiations fail, we also will act.”

The EU has under consideration a nearly $108 billion retaliatory tariff “covering a broad range of industrial and agricultural products” in case negotiations with the USA fail, according to a statement by the European Commission earlier this month.

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