The European Commission has cautioned the US to approach trade talks with “mutual respect, not threats” following President Donald Trump’s proposal to impose a 50 percent tariff on imports from the European Union beginning on June 1.
Maros Sefcovic, the Commissioner for Trade and Economic Security of EU in discussions with US trade representative Jamieson Greer and Commerce Secretary Howard Lutnick reiterated the 27-nation bloc’s commitment to a “mutually beneficial” trade deal.
“EU-US trade is unparalleled and needs to be governed by respect for one another rather than threat. We are prepared to protect our interests,” Sefcovic posted on X.
Trump’s tariff remarks on Friday coupled with the possibility of a 25 percent tax on Apple iPhones made outside the US caused tremors in the market immediately. The euro pared gains, the dollar weakened, and major indices fell. If the plan came to pass, economists have warned of repercussions—a major global economic fallout.
“With Trump, you never know, but this would be a major escalation. It would really hurt the U.S. and European economy,” said Holger Schmieding, chief economist at Berenberg.
Washington is demanding unilateral concessions, such as the removal of national taxes on digital services and the implementation of US food safety regulations, according to EU officials. Brussels, on the other hand, is proposing a package deal that includes cooperation on steel overcapacity, increased imports of LNG and soybeans from the US, and zero tariffs on industrial goods.
Antonio Tajani, the Italian foreign minister, supported the EU’s stance and emphasised the objective of “zero-for-zero tariffs.”
“We are maintaining the same line: de-escalation, but we are ready to respond,” said Laurent Saint-Martin, French Trade Minister, dismissing Trump’s remarks as not of much help.
Negotiations are anticipated to continue into early July, with a possible June summit in Paris, despite escalating tensions. Michal Baranowski, the Polish deputy economy minister said, “The fact that we see some important statements in the public domain does not mean that they will translate into actions of the U.S. administration.”
The US has already imposed 25% tariffs on steel, aluminum, and automobiles on the EU, and after July 8, a 20 percent increase is expected. Brussels has prepared up to €95 billion in countermeasures in response, but it is still pushing for a negotiated solution.