Overview

• President Donald Trump announced a 50% tariff on European Union goods starting June 1, citing stalled trade negotiations with the bloc.
• European stock indices, including Germany’s DAX and France’s CAC 40, dropped sharply following the announcement, reflecting market uncertainty.
• EU Trade Chief Maroš Šefčovič called for mutual respect in trade talks and pledged to defend the bloc’s interests while remaining open to negotiation.
• Key European export sectors, including pharmaceuticals, automobiles, aircraft, and luxury goods, face significant exposure to the proposed tariffs.
• The U.S. administration justifies the tariff escalation by pointing to a $236 billion trade deficit with the EU in 2024, while EU leaders warn of potential economic fallout.