Donald Trump threatens EU with 50% tariffs
The FTSE 100 fell today amid a wider stock market sell-off after US President Donald Trump said he would slap 50% trade tariffs on the European Union.
London’s blue-chip index ended the day down 21.29 points to finish the day at 8,717.97, a 0.24% fall.
Mr Trump said yesterday that discussions with the EU on trade were “going nowhere” and that new 50% tariffs would take effect on June 1.
The move is an escalation of his trade war with the bloc, after proposing a 20% tariff on US imports from the EU and then halving that to 10% to give time for negotiations.
Mr Trump also said he would apply a 25% levy on Apple’s iPhones that are manufactured outside the US.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s [sic] that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” he said.
Susannah Streeter, an analyst at Hargreaves Lansdown, said: “Even though the US president has become known for a harsh bark but a less painful bite, it does seem as though talks have hit an impasse and that’s sparked a sell-off.”
She added: “Investors are mulling the repercussions of this latest tariff twist, and realisation is dawning that the trade war is still very much alive.”
Yesterday, Mr Trump said the EU had been "very difficult to deal with", repeating his criticism that the bloc had been formed "for the primary purpose of taking advantage" of the US on trade.
"Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025," he added.