EU Maintains Firm Stance as Trump Threatens 50% Tariffs Amid US-EU Trade Tensions

President Donald Trump announced plans to impose a 50% tariff on goods imported from the European Union starting in 2025, escalating tensions in US-EU trade relations amid stalled negotiations. The EU has responded firmly, emphasizing the need for mutual respect and warning that such tariffs could harm the European economy, especially the luxury goods sector heavily reliant on US markets. European leaders and trade officials, including EU trade chief Maros Sefcovic, have expressed readiness to defend EU interests and called for de-escalation, while also acknowledging the tariffs may be a negotiating tactic. The announcement has already caused declines in European stock markets, highlighting the potential economic fallout for both sides. Discussions continue as the EU prepares trade meetings to formulate responses, with concerns that a trade war could lead to higher inflation, slower growth in the US, and a recession in Europe. These developments come alongside other international trade issues, including the reinstatement of EU quotas on Ukrainian products and the launch of the US-Ukraine Reconstruction Fund.