Transatlantic Tariff Tensions: Trump's 50% Threat and EU's Strategic Response

The European Commission has reached out to the United States seeking clarity after President Donald Trump proposed a 50% tariff on EU goods. The Commission will refrain from further comment until European Trade Commissioner Maros Sefcovic and U.S. Trade Representative Jamieson Greer convene for a scheduled discussion.

The announcement prompted a downturn in major stock indices and weakened the dollar against key currencies. Trump's remarks on tariffs, including a potential 25% duty on Apple iPhones produced outside the U.S., have raised concerns of escalating trade tensions. Holger Schmieding, chief economist at Berenberg, warns this could harm both U.S. and European economies.

Washington's demands for unilateral concessions have stalled negotiations, with the EU pushing for a deal beneficial to both parties. European officials like French Trade Minister Laurent Saint-Martin emphasize de-escalation while remaining firm to counter threats. Both sides hope for mutual agreements addressing goods tariffs and trade deficits.

(With inputs from agencies.)