We have a new development regarding America's tariff policy, and Europe appears to be in the crosshairs.
U.S. President Donald Trump on Thursday announced plans to impose a 50% tariff on all products imported from the European Union, beginning June 1, in an escalation of trade tensions with the bloc.
Taking to his namesake social media platform, Truth Social, Trump said that the European Union was formed “for the primary purpose of taking advantage of the United States on TRADE” and had erected “powerful Trade Barriers, VAT taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American companies, and more.”
He added that the U.S. runs a $250 billion trade deficit with the EU and that negotiations were “going nowhere.”
“Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States,” Trump stated.
Since assuming office, Trump has become known for approaching negotiations with an aggressive stance, later scaling down his demands as talks progress. Whether the President will follow through with his plans to tax 50% of European imports remains to be seen, however, its market impact is already being felt.
Markets took a hit following Trump’s tariff announcement, with the Dow Jones Industrial Average opening 480 points lower as investors absorbed the risks of escalating trade tensions. European stocks also tumbled, with Paris sliding 2.8%, Frankfurt dropping 2.5%, and the STOXX Europe 600 index suffering its worst daily decline in over a month.
After reaching a new record-high price yesterday, Bitcoin (BTC) also took a small hit from the news. Immediately after Trump’s announcement, BTC fell by 3.6% in a single hour. The asset would later recover some of the losses, currently trading at $108,338—down 2.51% over the last 24 hours.
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