Trump's Tariff Tensions: A New Trade Standoff with the EU

In a bold move likely to reinvigorate trade tensions, US President Donald Trump has announced a significant 50 percent tariff on all imports from the European Union, slated to take effect on June 1. The president accused the EU of exploiting the United States with what he described as 'powerful trade barriers.'

Using the social media platform Truth Social, Trump expressed his grievances against the EU, asserting that its trade practices have saddled the US with an 'unacceptable' annual trade deficit exceeding $250 million. According to Trump, the EU employs various protective measures like VAT taxes and corporate penalties, compelling him to recommend the tariff.

European Commission President Ursula von der Leyen recently lauded Trump's previous decision to pause reciprocal tariffs as vital for calming escalating trade tensions. She emphasized the need for zero-for-zero tariff agreements to benefit both businesses and consumers and reaffirmed the EU's commitment to fair trade, while seeking to diversify its global trade partnerships.

(With inputs from agencies.)