Threatening war: new escalation: Trump threatens EU with tariffs of 50 percent

In the trade dispute with the European Union, US President Donald Trump relies on maximum confrontation and threatens punitive tariffs of 50 percent. He “recommends” that the delivery for goods from the EU will enter into force on June 1, the Republican wrote Truth Social on his online language tube. Products that would be manufactured in the USA are except, he added. The US President justified the drastic step with stuck negotiations. At first there was no official reaction to the announcement from Washington. The DAX had sagged to the deepest stand for two weeks.

Is Trump’s threat is just a negotiation tactic?

It is unclear whether the punitive tariffs threatened by Trump will really come into force in the amount of 50 percent from June. Trump has regularly announced high tariffs in the past – and then completed a U -turn. Trump’s customs threats often serve as pressure tools to force concessions in negotiations. The United States has just closed a trading pact with Great Britain to avert high tariffs. With China, the US government also negotiated a reduction in mutual tariffs.

After his new threat, however, he gave himself not very compromising. “I’m not looking for a deal,” he said in the US capital. The United States had determined the deal, it sounds: tariffs of 50 percent. “But again: there is no customs if you build your factories here.” If someone decides to build a factory in the United States, they are ready to talk about a “small delay”, Trump continued. You will see what happens, but he currently assumes that the threatened tariffs would come into force on June 1st.

In late Friday afternoon there should be a phone call between the US trade officer Jamieson Greer and EU trade commissioner Maros Sefcovic. As a spokeswoman for the European Commission announced, the conversation was planned before Trump’s new message. Accordingly, the question arises whether the US president may only want to put pressure on the threat. According to information from the German Press Agency, both sides had exchanged position papers in the past few days. The conversation between Greer and Sefcovic should now take a possible next steps.

Trump took place a few weeks ago U -turn

In early April, Trump had announced the fight with the announcement of new tariffs on imports from all over the world. After great turbulence on the stock and financial markets, he surprisingly decided to grant a break from certain tariffs for 90 days. This time window is to be used for negotiations. At that time, the EU had also announced that it was initially exposed to the planned counter-tariffs on US products for 90 days. This time window is to be used for negotiations. The month of July has been considered the deadline.

However, the US government continues to raise a flat rate of 10 percent to almost all imports, including those from the EU. There are also industry -specific tariffs – for example on cars as well as steel and aluminum.

EU relies on agreements as a solution

In order to defuse the current trade dispute, the EU has already offered the United States an agreement to mutual cancellation of all tariffs on industrial goods. So far, the Trump government has not responded to this. In addition to customs deals, new agreements are considered an option. According to the EU Commission, the EU and Trump could, for example, conclude a new deal to expand American exports of liquefied gas (LNG). It would also be possible to import more military technology and agricultural goods in order to reduce the US trade deficit with the EU.

The EU sees Trump’s tariffs as not justified and incompatible with the rules of the World Trade Organization (WTO). She emphasizes that she will introduce decisive measures against US tariffs should the negotiations fail. This should include against tariffs.

Minister Reiche: “Need more trade, no less”

In Germany, one hopes for a negotiating solution. “Customs conflicts do not know any winners. We have to do everything to ensure that the European Commission with the United States comes to a negotiating solution. Customs harm to the USA and the EU alike,” said Minister of Economy Katherina Reich (CDU). “We need more trade, nothing less.”

Trump had recently been optimistic about finding a solution with the Europeans. It is therefore all the more surprising that his 50 percent customs threat is. The European Union was primarily founded for the purpose of overprovating the United States in the area of ​​trade, Trump has now complained about Truth. He criticized “powerful trade barriers, VAT, ridiculous company penalty, non-monetary trade barriers, currency manipulations, unfair and unjustified lawsuits against American companies and much more”.

Customs are also risky for Trump

He regularly accuses the Europeans to “rip off” the USA and want to force more balance in world trade with higher tariffs on imports to the United States. It is open whether this strategy works. The tariffs are also risky for the Republican in domestic policy, because they could drive up the prices. An import customs works similarly to a tax. The tax must be paid to the state by the importing company – in this case, companies in the USA. It is likely that importing companies will pass on the higher costs to consumers.

Shortly before his threat to the EU, the US President also made a contribution that was aimed at Apple – here too it was about tariffs. He had informed Apple boss Tim Cook a long time ago that he would expect to be manufactured and built in the United States in the United States, “not in India or anywhere else,” wrote Trump. “If this is not the case, Apple has to pay a custom of at least 25 percent to the USA.”