The European Commission on Friday urged the United States to approach trade negotiations with respect rather than intimidation, after President Donald Trump proposed a 50% tariff on European Union goods starting June 1.
EU trade chief Maros Sefcovic emphasized the bloc’s commitment to reaching a balanced trade agreement and said he had spoken with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. Sefcovic reiterated that the EU remains ready to negotiate in good faith.
“EU-U.S. trade is unparalleled and must be grounded in mutual respect, not threats. We are prepared to defend our interests,” Sefcovic stated on X.
Trump’s announcement triggered a drop in major stock indexes, weakened the dollar, and trimmed gains in the euro. He also hinted at a possible 25% tariff on Apple iPhones produced outside the U.S.
“With Trump, unpredictability is a given, but such a move would be a major escalation,” said Holger Schmieding, chief economist at Berenberg. “It would harm both the U.S. and EU economies.”
Negotiations have stalled as the U.S. pushes for unilateral concessions from Brussels, while the EU insists on a mutually beneficial agreement, sources familiar with the matter said.
EU leaders expressed support for the European Commission’s stance. Poland’s Deputy Economy Minister Michal Baranowski, representing the rotating EU presidency, suggested the tariff proposal might be a negotiation tactic. He noted that talks could extend into early July.
Dutch Prime Minister Dick Schoof emphasized consistency in the EU’s approach, remarking that tariffs have fluctuated during prior U.S. talks.
Currently, EU exports face a 25% U.S. tariff on steel, aluminum, and automobiles, and a 10% “reciprocal” tariff on most other goods—set to increase to 20% when a 90-day pause ends July 8.
French Trade Minister Laurent Saint-Martin said Trump’s latest tariff threats do not aid the negotiating process. “We continue to favor de-escalation, but we’re ready to act,” he said.
Italy’s Foreign Minister Antonio Tajani maintained that the ultimate goal was “zero-for-zero tariffs.”
The U.S. recently sent a proposal asking the EU to address the trade imbalance, including calls to adopt U.S. food safety standards and remove digital services taxes. The EU countered with a broader package: eliminating industrial tariffs, buying more U.S. LNG and soybeans, and cooperating on global steel overcapacity.
Sefcovic’s call with U.S. officials was part of ongoing talks, potentially leading to a meeting in Paris in early June.
Robert Sockin, a senior global economist at Citigroup, viewed Trump’s tariff push as an attempt to pressure the EU back to the negotiating table. “A 50% tariff would likely trigger a recession in Europe, but I doubt it will be implemented,” he said.
While the U.S. runs a large goods trade deficit with the EU—nearly €200 billion last year—it maintains a surplus in services.
The EU has said it prefers diplomacy but is prepared to retaliate. It has already approved, but suspended, duties on €21 billion of U.S. imports in response to metals tariffs and has drafted a €95 billion retaliation list targeting future U.S. auto and reciprocal tariffs.
(*$1 = €0.8831)
