EU Vows to Pursue US Trade Deal Amid Trump’s Tariff Threats
EU Trade Commissioner Maroš Šefčovič has reaffirmed the bloc’s commitment to securing a trade agreement with the United States, emphasizing that negotiations must be based on “mutual respect, not threats.” His remarks came in response to former President Donald Trump’s declaration on May 23 that he would impose a 50% tariff on all imports from the European Union.
Trump, who has returned to campaign mode, claimed he would levy the new tariff rate starting June 1, 2025, unless the EU made significant concessions. He asserted that the EU should face even higher tariffs than China, whose rate he would lower to 30%. On Truth Social, he wrote: “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union... There is no tariff if the product is built or manufactured in the United States.”
In response, Šefčovič posted on X that he had spoken with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. He said, “The EU is fully engaged and committed to securing a deal that works for both. EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests.”
Trump told reporters in the Oval Office that he was not seeking a new deal with the EU and might postpone the tariff rollout only if European firms invest more in U.S. operations. “I’m not looking for a deal. We’ve set the deal. It’s at 50%,” he said.
U.S. Treasury Secretary Scott Bessent sought to clarify Trump’s remarks during a Fox News interview. Bessent criticized the EU’s structure, saying the 27-member bloc suffers from a “collective action problem” because individual nations rely on Brussels to negotiate, often without fully understanding what’s being discussed on their behalf.
Trump has long argued that the U.S. trade deficit with the EU is “totally unacceptable.” While the U.S. imports more goods than it exports to Europe, EU officials point out that the overall trade balance, including services, is relatively even. The U.S. enjoys a surplus in services—such as finance and tech—that helps offset the goods deficit, placing the overall imbalance at approximately £39.8 billion ($54 billion).
German Foreign Minister Johann Wadephul voiced full support for the EU Commission, urging continued negotiations while warning against the economic fallout of increased tariffs. “I think such tariffs help no one,” he said. “They would only harm economic development in both markets. We support the Commission in defending Europe while also working to persuade our American partners.”
Although some White House officials have framed Trump’s tariffs as part of a broader strategy to isolate China and strengthen alliances, critics argue the tactic may backfire. German economist Marcel Fratzscher called the EU’s approach to Trump’s trade policies a “complete failure,” accusing Brussels and Berlin of showing weakness through concessions. “Trump sees Europe’s wavering as a sign of weakness,” he said in a post on X.
Mary Lovely, a senior fellow at the Peterson Institute for International Economics, suggested the proposed 50% tariffs are likely a negotiating tactic. Trump, she said, often escalates threats to test the other side’s resolve before walking them back. However, she warned that this strategy damages the U.S.’s credibility. “In the long run, it makes the U.S. look like an unreliable trading partner—one that acts on impulse rather than the rule of law.”
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