Trump Pressures EU to Cut Tariffs or Face Retaliatory Duties – FT

Trump Pressures EU to Cut Tariffs or Face Retaliatory Duties – FT

US President Donald Trump is intensifying pressure on the European Union, demanding the bloc lower tariffs on American imports or face a fresh wave of punitive trade measures. According to a report by the Financial Times, Trump’s negotiators are urging the EU to make unilateral concessions, warning that without such moves, the United States would impose 20% “reciprocal” tariffs on European goods.

Threat of New Tariffs Looms

The Trump administration argues that existing trade terms are unfairly tilted in the EU’s favor and that rebalancing tariffs is necessary to protect American industry and exports. Officials have emphasized that unless the EU lowers its trade barriers voluntarily, Washington is prepared to escalate the situation by levying additional duties—particularly targeting sensitive export sectors.

Strategic Pressure in Trade Talks

This latest development marks a renewed push by the US to gain leverage in broader trade negotiations with the EU. While talks have been ongoing for months, progress has stalled, and the threat of new tariffs is seen as a means of forcing quicker compliance with American demands.

The 20% reciprocal tariff, if enacted, could impact a range of European exports including automobiles, machinery, and agricultural products—key sectors for the EU economy.

Rising Global Trade Tensions

The warning to the EU comes as the US continues to maintain a hardline stance on international trade, with tensions also flaring between the US and China over tariffs and trade imbalances. Market analysts view this as part of a broader protectionist trend under the Trump administration.

So far, EU officials have not issued a formal response, but previous comments suggest the bloc could retaliate if the US follows through with its tariff threats.

Traders and investors are closely monitoring developments, as a breakdown in EU-US trade relations could have far-reaching implications for global markets. The threat of additional tariffs adds another layer of uncertainty to the already fragile international trade environment.