Trump threatens EU with 50 percent inch – Dax lubricates

US President Donald Trump threatens the European Union with goods duties of 50 percent from June 1. It was difficult with the EU to talk about trade, Trump explained on social media on Friday. However, there will be no tariffs if the respective product is manufactured in the USA. “The European Union, which was primarily founded to take advantage of the United States in retail, is very difficult to handle,” criticized Trump. “Our conversations with them do nothing.”

The EU Commission initially refused to comment. First she wanted to wait for a phone call between EU trade commissioner Maros Sefcovic and the US trade officer Jamieson Greer. The Polish Minister of Commerce Michal Baranowski replaced the threat and said it was still time for talks between the EU and the USA.

The announcements of the US President immediately triggered significant reactions to the financial markets. The German stock index Dax expanded its losses to almost 2 percent, while the euro made its profits.

“This is a significant escalation of the trade voltages,” said chief economist Holger Schmieding from Berenberg Bank. At Trump, however, you could never know. “The EU should react and that dignity of the US economy and the European economy significantly harm,” emphasized Schmieding. “But Trump is very unpredictable, and I would not bet that it will get that far.”

Baranowski, on the other hand, was rather relaxed about journalists. “The European Union and the United States are negotiating. Some negotiate behind closed doors, other more in front of cameras,” said the Minister from Poland, which is currently holding the EU Presidency. The fact that there are some important statements in public does not mean that they would be reflected in the US government measures. So far, there has also been a clear signal at the political level that the United States and the EU have decided to hold back with mutual tariffs. “We have time for negotiations by the beginning of July, and as far as I know, they are making progress,” said Baranowski.

Trump has covered the most important trading partners since returning to the White House with high special tariffs. However, many of these new tariffs are currently temporarily exposed to finding a solution in negotiations. The EU had to rely on talks, said the new Federal Minister of Economics Katherina Reiche. “We have to negotiate, we have to come to a solution because an escalation does not know any winners.”

Trump also threatened Apple with a 25 percent customs on all iPhones sold in the USA but are not produced there. More than 60 million cell phones are sold in the United States every year, but there is no smartphone production there.