Global Markets Jitter as Trump Escalates EU Trade Spat with 50% Tariff Threat

Donald Trump’s latest pronouncement – a proposed 50% tariff on all European Union goods effective June 1st – has sent ripples of concern through global markets. The US president’s frustration with the slow pace of trade talks and a claimed $250 million annual trade deficit with the EU spurred the announcement, which also included a potential 25% levy on Apple and Samsung phones. This aggressive stance immediately triggered falls in leading US stock indexes and European shares. In response, EU Trade Commissioner Maroš Šefčovič stressed the need for a trade deal based on “respect not threats,” vowing to defend the EU’s interests. European leaders across the board voiced their disappointment and called for continued dialogue, warning against the damaging economic consequences of such high tariffs on the significant EU-US trade relationship.