Trump's Tariff Tactics: A Looming Trade War with the EU

U.S. President Donald Trump has signaled a potential escalation in his trade war by proposing a 50% tariff on European Union goods starting June 1. This move also includes a possible 25% tariff on iPhones manufactured outside the U.S. The proposal has prompted swift reactions from business and government leaders.

Volvo Cars CEO Hakan Samuelsson expressed concern, saying the tariff would severely limit the company's ability to sell its Belgium-produced EX30 electric vehicle in the U.S. German Economy Minister Katherina Reiche argued against the tariffs, stating they harm both regions equally, and emphasized the urgent need for a negotiated solution.

Industry representatives from various sectors, including distilled spirits and cosmetics, called for balanced agreements and expressed hope for reducing trade barriers. Dirk Jandura of Germany's BGA Trade Association labeled the trade war a strategic and economic error, advocating for mutual respect and open negotiations.

(With inputs from agencies.)