EU calls for respectful trade relations with Trump

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

The European Commission urged the U.S. 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 U.S. Trade Representative Jamieson Greer and U.S. 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-U.S. 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 U.S.

"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 U.S. and European economy."

The tariff threat comes as talks are stuck, with Washington demanding unilateral concessions from Brussels to open up to U.S. 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.

"The European Union and the United States are negotiating," he told reporters on the sidelines of a meeting in Brussels, adding negotiations could last until early July.

"The fact that we see some important statements in the public domain does not mean that they will translate into actions of the U.S. administration," he said.

Dutch Prime Minister Dick Schoof said the EU would stick to the path it had chosen.

"We have seen that tariffs can go up and down in talks with the U.S," he told reporters in The Hague.

The EU already faces 25% U.S. import tariffs on its steel, aluminium and cars and so-called "reciprocal" tariffs of 10% for almost all other goods, a levy that was due to rise to 20% after Trump's 90-day pause expires on July 8.

French Trade Minister Laurent Saint-Martin said Trump's new threats did nothing to help negotiations.

"We are maintaining the same line: de-escalation, but we are ready to respond," he wrote on X.

Italian Foreign Minister Antonio Tajani told Italian news agency ANSA that the aim remained "zero-for-zero tariffs".

Tensions are mounting between Washington and Brussels, as the U.S. recently delivered a list of demands aimed at reducing its goods trade deficit with the European Union—nearing €200 billion last year. Among the key asks: adopting American food safety standards and scrapping digital services taxes.

In response, the EU has floated a compromise—offering zero tariffs on industrial goods, increased purchases of U.S. liquefied natural gas and soybeans, and cooperation on global steel overcapacity, largely blamed on China. A follow-up call between EU Vice President Maroš Šefčovič and U.S. officials was scheduled ahead of a potential high-level meeting in Paris in early June.

Experts, including Citigroup’s Robert Sockin, suggest President Trump’s aggressive tariff threats—reportedly up to 50%—may be aimed at pressuring the EU back to the negotiating table, though they are unlikely to be implemented in full due to their potentially recessionary impact on Europe.

While the European Commission favors a diplomatic solution, it has warned it is ready to retaliate. Brussels has already prepared counter-tariffs on €95 billion worth of U.S. goods and has a €21 billion package on standby, originally drawn up in response to past U.S. metals duties.