EU warns of retaliation on US tariff push

Tariff threat comes as talks are stuck, with Washington demanding concessions

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BRUSSELS:

The European Commission urged the US on Friday to bring respect, not threats, to trade talks after President Donald Trump pushed for a 50% tariff on EU goods.

Insisting the European Union was committed to securing a deal that worked for both sides, EU Trade Chief Maros Sefcovic spoke with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick. Trump had recommended higher tariffs on the EU from June 1.

The European Commission, which oversees trade policy for the 27-nation bloc, remained ready to work in good faith, Sefcovic said. "EU-US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests," he wrote in a post on X.

Major stock indices tumbled, the dollar fell against major currencies and the euro pared gains after Trump's announcement on EU tariffs and a potential 25% duty on Apple iPhones manufactured outside the US.

"With Trump, you never know, but this would be a major escalation," said Holger Schmieding, chief economist at Berenberg. "The EU would have to react and it is something that would really hurt the US and European economy."

The tariff threat comes as talks are stuck, with Washington demanding unilateral concessions from Brussels to open up to US business while the EU seeks an agreement in which both sides could gain, according to people familiar with the talks.

EU leaders and ministers that spoke after Trump's announcement broadly backed the European Commission's approach. Polish deputy economy minister Michal Baranowski, whose country holds the rotating EU presidency, said the tariff threat appeared to be a negotiating ploy.