President Donald Trump has warned that his administration may impose a 50% tariff on all products from the European Union starting next month.
The announcement, made Friday morning, came as a pointed message to Brussels after over a month of stalled negotiations.
A source close to the White House told the New York Post the move is part of a hardball strategy also described as “FAFO”—an acronym for “f*ck around and find out.”
Speaking in the Oval Office, Trump said he’s “not looking for a deal” but wants the EU to stop “doing it wrong.”
Markets reacted sharply ahead of Memorial Day weekend, with the Dow Jones dropping 256 points, the Nasdaq falling 188, and the S&P 500 losing 39.
The EU’s top exports to the U.S. include cars, pharmaceuticals, machinery, electronics, wine, and agricultural products.
European Commission Vice President Maros Sefcovic confirmed a scheduled call with U.S. trade officials, saying the EU is “ready to work in good faith.”
Sefcovic emphasized that EU-U.S. trade must be based on “mutual respect, not threats,” and warned Brussels would “defend our interests.”
European Parliament Vice President Martin Hojsik called Trump’s move “blackmail” and urged the EU to “respond fast in kind and proportion,” the New York Post reported.
On Truth Social, Trump accused the EU of forming “for the primary purpose of taking advantage of the United States on TRADE.”
He cited trade barriers, VAT taxes, lawsuits, and currency manipulation as factors behind a $250 billion trade deficit with the EU.
Another administration source said the EU’s “posturing and demeanor” were hampering meaningful progress at the negotiation table.
Treasury Secretary Scott Bessent told Fox News the EU’s proposals fall short compared to what the U.S. is receiving from Asian partners.
Bessent said some EU member nations “don’t even know” what Brussels is negotiating on their behalf.
Trump paused his “Liberation Day” tariff package for 90 days starting April 9 to allow individual countries time to strike their own deals.
So far, only the UK has finalized a deal, while a preliminary agreement was reached with China.
The UK agreement keeps a 10% tariff in place but grants greater access for U.S. agricultural products.
Trump has signaled that the window to negotiate is closing and new tariffs may be announced soon.
His administration described the UK deal as a “template” for other countries, confirming no nation will receive a rate below 10%.
The trade war with China, which once saw tariffs rise to 145%, was cooled earlier this month after talks in Switzerland, lowering the rate to 30%.
