Investing.com -- In the latest escalation of trade tensions, U.S. President Donald Trump has proposed a 50% tariff on the European Union (EU) starting next month, saying talks are going nowhere, as disputes between Washington and Brussels intensify.
The EU "has been very difficult to deal with," Trump wrote in a post on his social media platform Truth Social on Friday, adding "Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025."
In a separate post, he also threatened to impose at least a 50% tariff on Apple (NASDAQ:AAPL) if the company does not start manufacturing iPhones in the country.
Earlier in the day, the Financial Times reported that Trump’s trade negotiators are pressuring the EU to unilaterally reduce tariffs on American goods or face further punitive measures.
U.S. trade representative Jamieson Greer was expected to tell his EU counterpart Maroš Šefčovič that the bloc’s latest proposal “falls short of U.S. expectations,” the Financial Times reported Friday, citing people familiar with the talks.
The U.S. is dissatisfied that Brussels has only offered mutual tariff reductions, not the unilateral cuts Washington is seeking. The EU’s failure to put its proposed digital tax on the negotiating table has also drawn criticism from U.S. officials.
Talks have been slow to progress since President Donald Trump’s administration announced a 90-day negotiation window, with both sides exchanging draft texts but making little headway.
“Exchanging letters is not real progress,” the report cited one of the officials briefed on the talks. “We are still not really getting anywhere.”
The U.S. has already imposed a 20% “reciprocal” tariff on most EU goods, although it halved the rate temporarily until July 8 to allow time for negotiations. Tariffs of 25% remain in place on steel, aluminium, and car parts, with threats of similar duties on pharmaceuticals, semiconductors, and other products.
Greer and Šefčovič are scheduled to meet in Paris next month in what could be a decisive round of negotiations. The U.S. is pushing for measures that would help reduce its €192 billion trade deficit with the EU.
Officials in Washington are also demanding that Brussels drop national digital taxes and accept U.S. food and product standards, alongside easing investment regulations.
The EU has responded with offers to discuss mutual recognition of standards, trade facilitation in food and agriculture, and stronger commitments on labour rights and environmental standards—issues high on the U.S. agenda. However, the gap between the sides remains wide.
While the EU has suspended tariffs on €23 billion of US goods during the talks, it is also preparing a list of potential new duties on €95 billion of American imports, including aircraft and Bourbon whiskey.
“The priority for the EU is to seek a fair, balanced deal with the U.S.,” said EU trade spokesman Olof Gill, who emphasized the need to resolve current disputes and foster strategic cooperation.
(Maria Ponnezhath contributed reporting.)