The Japan Times - Trump’s 50% tariffs on europe

EUR -
AED 4.277424
AFN 76.282379
ALL 96.389901
AMD 444.278751
ANG 2.0846
AOA 1067.888653
ARS 1666.882107
AUD 1.752778
AWG 2.096182
AZN 1.984351
BAM 1.954928
BBD 2.344654
BDT 142.403852
BGN 1.956425
BHD 0.438198
BIF 3455.206503
BMD 1.164546
BND 1.508021
BOB 8.044377
BRL 6.334667
BSD 1.164081
BTN 104.66486
BWP 15.466034
BYN 3.346807
BYR 22825.091832
BZD 2.341246
CAD 1.610276
CDF 2599.265981
CHF 0.936525
CLF 0.027366
CLP 1073.571668
CNY 8.233458
CNH 8.232219
COP 4463.819362
CRC 568.64633
CUC 1.164546
CUP 30.860456
CVE 110.752812
CZK 24.203336
DJF 206.963485
DKK 7.470448
DOP 74.822506
DZD 151.068444
EGP 55.295038
ERN 17.468183
ETB 180.679691
FJD 2.632397
FKP 0.872083
GBP 0.872973
GEL 3.138497
GGP 0.872083
GHS 13.3345
GIP 0.872083
GMD 85.012236
GNF 10116.993527
GTQ 8.917022
GYD 243.550308
HKD 9.065929
HNL 30.604708
HRK 7.535429
HTG 152.392019
HUF 381.994667
IDR 19435.740377
ILS 3.768132
IMP 0.872083
INR 104.760771
IQD 1525.554607
IRR 49041.926882
ISK 149.038983
JEP 0.872083
JMD 186.32688
JOD 0.825709
JPY 180.935883
KES 150.58016
KGS 101.839952
KHR 4664.005142
KMF 491.43861
KPW 1048.083022
KRW 1716.311573
KWD 0.357481
KYD 0.970163
KZT 588.714849
LAK 25258.992337
LBP 104285.050079
LKR 359.069821
LRD 206.012492
LSL 19.73949
LTL 3.438601
LVL 0.704422
LYD 6.347216
MAD 10.756329
MDL 19.807079
MGA 5225.31607
MKD 61.612515
MMK 2445.475195
MNT 4130.063083
MOP 9.335036
MRU 46.419225
MUR 53.689904
MVR 17.938355
MWK 2022.815938
MXN 21.164687
MYR 4.787492
MZN 74.426542
NAD 19.739485
NGN 1688.68458
NIO 42.826206
NOK 11.767853
NPR 167.464295
NZD 2.015483
OMR 0.446978
PAB 1.164176
PEN 4.096293
PGK 4.876539
PHP 68.66747
PKR 326.50949
PLN 4.229804
PYG 8006.428369
QAR 4.240169
RON 5.092096
RSD 117.610988
RUB 88.93302
RWF 1689.755523
SAR 4.37074
SBD 9.584899
SCR 15.748939
SDG 700.4784
SEK 10.946786
SGD 1.508557
SHP 0.873711
SLE 27.603998
SLL 24419.93473
SOS 665.542019
SRD 44.985272
STD 24103.740676
STN 24.921274
SVC 10.184839
SYP 12877.828498
SZL 19.739476
THB 37.119932
TJS 10.680789
TMT 4.087555
TND 3.436865
TOP 2.803946
TRY 49.523506
TTD 7.89148
TWD 36.437508
TZS 2835.668687
UAH 48.86364
UGX 4118.162907
USD 1.164546
UYU 45.529689
UZS 13980.369136
VES 296.437311
VND 30697.419423
VUV 142.156196
WST 3.249257
XAF 655.661697
XAG 0.019993
XAU 0.000278
XCD 3.147243
XCG 2.098055
XDR 0.815205
XOF 655.061029
XPF 119.331742
YER 277.802752
ZAR 19.711451
ZMK 10482.311144
ZMW 26.913878
ZWL 374.983176
  • SCS

    -0.0900

    16.14

    -0.56%

  • NGG

    -0.5000

    75.41

    -0.66%

  • CMSC

    -0.0500

    23.43

    -0.21%

  • CMSD

    -0.0700

    23.25

    -0.3%

  • BTI

    -1.0300

    57.01

    -1.81%

  • GSK

    -0.1600

    48.41

    -0.33%

  • RBGPF

    0.0000

    78.35

    0%

  • BP

    -1.4000

    35.83

    -3.91%

  • AZN

    0.1500

    90.18

    +0.17%

  • BCC

    -1.2100

    73.05

    -1.66%

  • JRI

    0.0400

    13.79

    +0.29%

  • BCE

    0.3300

    23.55

    +1.4%

  • RIO

    -0.6700

    73.06

    -0.92%

  • RELX

    -0.2200

    40.32

    -0.55%

  • RYCEF

    -0.0500

    14.62

    -0.34%

  • VOD

    -0.1630

    12.47

    -1.31%


Trump’s 50% tariffs on europe




In a move that has sent shockwaves through global markets, U.S. President Donald Trump has threatened to impose 50% tariffs on imports from the European Union, initially set for June 1, 2025, but later delayed to July 9 to allow for negotiations. This aggressive trade policy has sparked intense debate about its motivations and potential consequences for the European economy, which relies heavily on exports to the United States. The proposed tariffs, described as a tool to reshape global trade dynamics, raise questions about the strategic intent behind such a drastic measure and its implications for transatlantic relations.

The European Union, a key trading partner of the United States, exported goods worth billions to the U.S. in 2024, with sectors like pharmaceuticals, automotive, and luxury goods leading the charge. A 50% tariff would significantly increase the cost of these goods, potentially reducing demand and squeezing profit margins for European companies. For instance, Germany’s automotive industry, including brands like BMW and Porsche, faces heightened risks, as does France’s luxury sector, which employs over 600,000 people. Italy’s high-end leather goods and the European aerospace sector, exemplified by companies like Airbus, could also face severe disruptions. The European Commission has estimated that such tariffs could shave 0.5% off the EU’s GDP, a substantial blow to an economy already grappling with global uncertainties.

Trump’s rationale appears rooted in a long-standing belief that tariffs are a solution to perceived trade imbalances. He has publicly expressed frustration with the EU, accusing it of being “very difficult to deal with” and slow to negotiate. His administration argues that the EU benefits disproportionately from trade with the U.S., a claim that resonates with his domestic base but overlooks the mutual benefits of transatlantic commerce. The president’s strategy seems to leverage tariffs as a negotiating tactic, pressuring the EU to concede to terms more favourable to U.S. interests, such as increased purchases of American goods like soya beans, arms, and liquefied natural gas. The delay to July 9, following a phone call with European Commission President Ursula von der Leyen, suggests a willingness to negotiate, but the threat of tariffs remains a powerful bargaining chip.

Critics argue that Trump’s approach is less about economic fairness and more about political posturing. By targeting the EU, he reinforces a narrative of protecting American jobs and manufacturing, a cornerstone of his economic agenda. His recent announcement to double steel tariffs to 50% and impose 25% tariffs on autos underscores this focus on domestic industry. However, the broader economic fallout could be severe. European officials, including Germany’s Lars Klingbeil, have warned that such a trade conflict harms both sides, endangering jobs and economic stability. The EU has signalled readiness to retaliate with counter-tariffs, potentially targeting U.S. products like Boeing aircraft, which could escalate tensions into a full-blown trade war.

The timing of the tariff threat adds to its disruptive potential. Europe’s economy, while showing resilience in some areas—Germany’s GDP grew unexpectedly in early 2025 due to strong exports—is not immune to external shocks. The uncertainty surrounding Trump’s tariffs has already rattled markets, with European stocks tumbling after the initial announcement before recovering slightly upon the delay. Companies like HP, which cited tariff-related costs as a factor in cutting earnings forecasts, illustrate the ripple effects on global supply chains. Small businesses and consumers, particularly in the U.S., could face higher prices, while European exporters risk losing market share if forced to absorb tariff costs.

Trump’s tariff strategy also faces legal challenges. A U.S. trade court recently ruled that his use of emergency powers to impose tariffs was unlawful, though an appeals court temporarily reinstated them. This legal uncertainty complicates the administration’s plans, yet Trump’s team has hinted at alternative mechanisms, such as invoking a 1930 trade law to bypass judicial rulings. These manoeuvres reflect a determination to press forward, regardless of opposition, aligning with Trump’s broader goal of reshaping the global economic order.

For the EU, the path forward involves balancing diplomacy with resolve. The European Commission, led by Ursula von der Leyen, has committed to fast-tracking trade talks, with negotiations set to intensify in the coming weeks. EU Trade Commissioner Maroš Šefčovič is expected to engage directly with U.S. counterparts, aiming for a deal that could reduce tariffs to zero on industrial goods. However, the EU remains firm in defending its interests, preparing countermeasures should talks falter. The bloc’s unity will be tested as member states like Italy, with leaders like Giorgia Meloni fostering ties with the White House, push for compromise, while others advocate a harder line.

The stakes are high for both sides. A failure to reach an agreement by July 9 could trigger a tariff regime that disrupts supply chains, inflates consumer prices, and erodes economic confidence. For Trump, the tariffs are a high-stakes gamble to assert U.S. dominance in global trade, but they risk alienating a key ally and destabilising an interconnected economy. For Europe, the challenge is to navigate this turbulent period without sacrificing its economic vitality or succumbing to pressure. As negotiations unfold, the world watches closely, aware that the outcome will shape the future of transatlantic trade and beyond.