Trump to hit EU with 50% tariff as trade talks are ‘going nowhere' - Stock Market Falls

24th May 2025

EU imports to US will be subject to levy from 1 June as tit for tat markets slump.

The US president posted on his Truth Social platform that his long-running battle to secure concessions from the EU had run aground.

He accused the EU of taking advantage of the US on trade, saying: "Our discussions with them are going nowhere! Therefore I am recommending a straight 50% Tariff on the European Union, starting on 1 June 2025."

Stock markets nose-dived in response to the post, with S&P 500 futures down by 1.5% before the New York market opening.

Additionally, Trump has threatened a 25% tariff on Apple products if the company does not manufacture iPhones in the U.S..

These announcements have already impacted financial markets, with the FTSE 100 dropping by over 1.15% following Trump's statement. The EU is reportedly preparing retaliatory tariffs worth approximately €100 billion ($113 billion) in response.