[Text by Guancha Observer Network, Chen Sijia] On May 23rd local time, U.S. President Trump posted on his self-created social platform "Truth Social", saying that the U.S. and the EU's trade negotiations have made no progress, and he suggested imposing a 50% tariff on the EU from June 1st. Trump also criticized the EU for setting "strong trade barriers" and said its main purpose was to take advantage of the United States.

"The EU is trying to negotiate step by step, while Trump is tearing up the rules," The New York Times reported on May 24th, stating that the EU has always negotiated with the Trump administration in the manner of an ally. However, Trump regards tariff negotiations as an opportunity to exert pressure and force concessions from commercial rivals, which may cause heavy damage to the EU and reshape the basic contours of the transatlantic relationship.

Since Trump returned to the White House, the U.S. has announced tariffs on steel, aluminum, and other industries, and threatened to impose high "reciprocal tariffs." In the past few months, EU officials have held several rounds of negotiations with the U.S., but these negotiations have made very limited progress.

Reportedly, during the negotiation process, the EU put forward their "win-win solution," including reducing industrial product tariffs to zero and purchasing more American natural gas. However, diplomatic officials and informed sources revealed that U.S. negotiators have been seeking unilateral proposals, and White House officials hinted that this was not "mutual concessions," but rather demands placed on Europe.

U.S. Treasury Secretary Besent stated in an interview with Fox News on May 23rd: "I believe the president thinks that the EU's proposal does not meet the quality we see from other important trading partners."

U.S. Commerce Secretary Rutnique also said earlier this week: "The president will decide whether they have proposed a worthwhile proposal to modify the tariff terms. If they do not propose modifications, the president will write them a letter saying, 'Dear A country, we greatly appreciate doing business with you, and here is your tariff rate.' There will be no lower limit than 10%."

Breme Harbor container terminal in Germany on April 22nd, Visual China

Meanwhile, Trump is exerting pressure on the EU to make several trade-related changes. For instance, Trump wants European countries to abolish the current value-added tax system, but EU negotiators have clearly stated that this is not within the scope of negotiations. U.S. officials also hope the EU will change food safety standards to import more U.S. beef, but the EU is unwilling to accept this requirement.

The EU's regulation of digital services and social media companies has also drawn criticism from the Trump administration, with U.S. officials accusing the EU of using relevant laws to "target American companies." EU officials firmly deny the U.S. accusations, and Vice President of the European Commission and Commissioner for Competition Teresa Rivera emphasized last month that she would strictly crack down on large tech companies violating EU digital antitrust rules.

Jörn Fleck, senior director of the Atlantic Council's Europe Center, pointed out: "There is a significant gap between what the EU expects to achieve in these negotiations and the concessions the U.S. government is willing to offer."

Due to the lack of progress in U.S.-EU negotiations, Trump once again issued a tariff threat against the EU on May 23rd. He posted on "Truth Social": "The EU - an organization established mainly to take advantage of the U.S. in trade - has always been very difficult to deal with. They have set strong trade barriers, levied value-added taxes, absurd corporate fines, non-monetary trade barriers, currency manipulation, unfair and unreasonable litigation against U.S. companies, etc... "

Trump said he proposed imposing a 50% tariff directly on EU products starting June 1st this year, with no tariffs required for products manufactured or produced in the U.S.

The New York Times noted that if a 50% tariff were to take effect and continue, it would severely impact the EU. Currently, the EU faces a 10% tariff, and after the 90-day suspension period announced by Trump ends, the EU is expected to face a 20% tariff starting July.

The article analyzes that EU officials are attempting to negotiate step by step, treating the U.S. government as an ally. However, the Trump administration does not view this as an opportunity for mutually beneficial solutions among geopolitical partners; instead, it sees tariff negotiations as an opportunity to exert pressure and force concessions from commercial competitors, which could reshape relations between the U.S. and Europe.

According to EU estimates, nearly $5 billion worth of goods and services flow between the U.S. and Europe daily. Data from the U.S. Bureau of Economic Analysis shows that in 2024, the U.S. trade deficit with the EU reached $235.6 billion.

After Trump's threat of a 50% tariff, EU Trade Commissioner Maros Sefcovic posted on social media on May 23rd: "EU-U.S. trade is unparalleled and must be guided by mutual respect, not threats. We are always prepared to defend our interests."

Some analysts in the U.S. and Europe believe that the 50% tariff threat is Trump's "negotiating strategy," but it remains unclear how this trade dispute will end.

The EU released its counter-tariff list against the U.S. on the 8th local time, planning to impose retaliatory tariffs on U.S. civilian aircraft, cars, medical devices, as well as agricultural products, alcoholic beverages, and other imports. The European Commission stated that it has launched public consultations on countermeasures against $95 billion worth of U.S. imports, which will be implemented if no trade agreement can be reached with the U.S.

This article is an exclusive piece by the Guancha Observer Network and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7508398245203149347/

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