[Text/Observer Network, Xiong Chaoyi] On May 23rd local time, US President Donald Trump suddenly made a tough remark on social media and suggested imposing a 50% tariff on EU goods starting June 1st.

According to reports by The Wall Street Journal on the same day citing informed sources, Trump unexpectedly threatened tariffs on the EU as his economic team's dissatisfaction with Europe on issues such as taxation, regulation, and even China policy has been deepening. Trump's advisors complained that they believed European negotiators were cautious in talks and unwilling to propose specific solutions addressing US concerns, including streaming service fees, value-added tax, car regulations, and fines imposed on American companies in antitrust cases.

The sources also mentioned that so far, the US has not received any commitment from EU leaders regarding new tariffs on Chinese industries, which is a top priority for officials in the Trump administration trying to increase trade pressure on China. The sources used the UK as an example, stating that as part of separate trade negotiations with the US, the UK had set strict "security" terms in strategic areas such as steel and pharmaceuticals, which contained clauses targeting China’s supply chains, contributing to the new trade agreement reached between the UK and the US earlier this month.

On May 23rd local time, in Frankfurt, Germany, a screen displayed US President Trump. After Trump announced a huge tariff on EU goods, Germany's main stock index DAX fell sharply. Visual China

The Wall Street Journal pointed out that over the years, Trump has expressed anger towards Europe both publicly and privately. Compared to some of America's "adversaries," Trump often made sharper criticisms against leaders of European countries.

From the beginning of his first term, Trump criticized NATO member states for not investing enough in defense. He has repeatedly emphasized this issue over the years. In February this year, he described the EU as an organization established to exploit the United States; earlier this month, he once again attacked the EU, accusing it of being very unfair to the US.

The report noted that Trump's direct negotiation strategy contrasts sharply with the more cautious and procedural approach of EU leaders. EU actions usually require frequent consultations with various member states to ensure consistency, meaning that EU actions are often slower, which is a major frustration for the Trump administration.

In recent days, EU officials had been optimistic that trade negotiations with the US were gradually accelerating after a slow start, but Trump's threat on social media on May 23rd came as a surprise to EU officials and diplomats.

A person familiar with the negotiations said that the EU and the US recently exchanged documents describing key points that could be discussed in trade talks. Some European diplomats considered this a positive development. The EU also privately indicated its willingness to cooperate with the US to address the issue of subsidies for key industries by China.

It was reported that on the day Trump issued his threat, Maros Sefcovic, EU Commissioner for Trade and Economic Security, spoke on the phone with US Trade Representative Jammison Greer and Commerce Secretary Lutnik. After the call, Sefcovic stated that the EU was fully committed to trade negotiations with the US but was prepared to defend its own interests.

Sefcovic wrote on social media that trade between Europe and the US was unparalleled but must be guided by mutual respect rather than threats. An EU official said, "China is not the main issue in the negotiations between the two sides."

The report mentioned that EU officials tried to seek a "middle path" when responding to the US—they did not want to adopt the same tough trade countermeasures as China but were determined to be stronger than the UK. In the trade agreement reached earlier this month with the US, the UK retained the policy clause for a 10% tariff increase proposed by Trump, while several EU ministers recently clearly stated that they would not accept a trade agreement maintaining a 10% tariff.

Regarding discussions about China, it is actually part of the US effort to push its trading partners to oppose China through so-called "reciprocal tariff" negotiations. This attempt aims to limit China's influence in strategic industries like steel on other economies and force other countries to impose tariffs on Chinese goods to offset their global competitiveness.

Informants revealed that the US has made similar "economic security" demands to other major trading partners such as Japan and South Korea, but no public commitments have been made so far. Meanwhile, China remains an important export market for the EU, and European leaders are unwilling to engage in a fierce trade war with China.

The Wall Street Journal reported that so far, the EU has opposed some of Trump's demands. Officials said they did not intend to change the EU's value-added tax system, which the Trump administration criticized. The EU and many economies consider this tax system non-discriminatory. Officials also said that the EU would not change health and digital regulations.

An EU diplomat said on May 23rd that it was difficult for the EU to know if Trump really intended to follow through on his tariff threats based on his posts. "You cannot base policies on posts on the 'Truth Social' platform," the diplomat said. Meanwhile, US Treasury Secretary Baisent said in an interview with Fox News that he hoped Trump's tariff threats would "fully ignite the urgency of the EU."

On May 23rd local time, former US President Donald Trump posted on his self-founded social media platform "Truth Social," suggesting imposing a 50% tariff on EU products starting June 1, 2025. Trump accused the EU: "The main purpose of its establishment was to take advantage of the US."

Trump's post threatening the EU on "Truth Social" platform

Trump wrote, "The EU—the organization established mainly to gain advantages in trade at the expense of the US—has always been very difficult to deal with. They have erected strong trade barriers, levied value-added taxes, absurd corporate fines, non-monetary trade barriers, currency manipulation, and unfair and unreasonable litigation against US companies... "

Trump also stated that there had been no progress in US-EU negotiations, "Therefore, I suggest imposing a 50% tariff directly on EU products starting June 1, 2025. If the product is manufactured or produced in the US, no tariff will be applied."

After Trump made the threat, all three major US stock futures fell immediately. Dow Jones Industrial Average futures fell by 1.54%, S&P 500 futures fell by 1.61%, and Nasdaq futures fell by 1.98%. It is worth noting that shares of US tech giant Apple dropped sharply before the market opened, falling nearly 4%. Previously, Trump stated that if Apple did not produce its iPhones in the US, he would impose at least a 25% tariff on its products. Additionally, major European stock indices also fell sharply. Germany's DAX index fell by 2.87%, France's CAC 40 index fell by 3.03%, and the UK's FTSE 100 index fell by 1.42%.

It was reported that the EU had previously approved a 21 billion euro tariff on US imports, but postponed implementation after the Trump administration announced a 90-day suspension of additional tariffs. The EU also warned that if negotiations with the US broke down, it would consider imposing tariff measures on a second batch of goods worth up to 95 billion euros.

On April 22nd local time, the EU responded by stating that trade negotiations between the US and the EU were unrelated to relations with China. Despite the latest developments, the EU's policy towards China would "remain unchanged," and the EU would not decouple from China. "We are negotiating trade with the US. This is a negotiation between the two sides, discussing how to achieve mutual benefits. This is different from our relationship with China."

At the same time, the spokesperson for China's Ministry of Commerce emphasized that facing unilateralism and protectionism, no country can remain unscathed. If international trade returns to the "law of the jungle," all countries will become victims. China is willing to strengthen unity and coordination with all parties, work together to resist unilateral bullying behavior, safeguard its legitimate rights and interests, and defend international fairness and justice.

This article is an exclusive contribution by Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7508178932873593385/

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