US President Donald Trump has said that the tariff discussions with the EU “are going nowhere” and recommended a 50 percent tariff rate against the EU, starting on June 1.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump said on social media on Friday.
US and European stocks tumbled after Trump’s statement. Dow slumped 460 points, or 1.1 percent, in early trading, while European equity gauges also fell sharply, with Germany's DAX losing 1.6 percent, Britain's FTSE 100 dropping 0.8 percent and the regionwide Stoxx 600 share index 1.9 percent lower.
“Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the US of more than $250,000,000 a year, a number which is totally unacceptable,” he noted.
Donald Trump announces huge new tariffs of 34 percent on imports from China, 20 percent on imports from EU — two of the main US trade partners — also including 24 percent on Japan and 26 percent on India.
Trump added that there will not be a tariff if the products are made in the US. He has sparked uncertainty in global trade after announcing his “reciprocal” tariffs on April 2 for over 180 countries.
The Trump administration’s pullback on import duties showed the resilience of the Asian giant. But the trade war also exposed some of China’s own vulnerabilities.
The EU was subjected to a 20 percent tariff rate on April 2. He later suspended those tariffs for every country except China, while China’s tariffs were also suspended after talks in Geneva earlier this month.
The US president has been seeking trade deals with other countries and reached a trade deal with the UK earlier this month.
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