Zürcher Nachrichten - Trump’s 50% tariffs on europe

EUR -
AED 4.258314
AFN 80.58869
ALL 97.341206
AMD 444.98716
ANG 2.075182
AOA 1063.274903
ARS 1500.373165
AUD 1.778666
AWG 2.090025
AZN 1.972673
BAM 1.946265
BBD 2.342404
BDT 142.120501
BGN 1.955748
BHD 0.4371
BIF 3411.871711
BMD 1.159515
BND 1.490415
BOB 8.044826
BRL 6.479946
BSD 1.160132
BTN 100.481381
BWP 15.637907
BYN 3.796324
BYR 22726.486163
BZD 2.330214
CAD 1.592999
CDF 3349.837615
CHF 0.931502
CLF 0.028347
CLP 1112.044011
CNY 8.322822
CNH 8.328092
COP 4841.367691
CRC 585.978785
CUC 1.159515
CUP 30.727137
CVE 109.168254
CZK 24.597594
DJF 206.069299
DKK 7.463111
DOP 70.44032
DZD 150.607948
EGP 56.575959
ERN 17.392719
ETB 159.780873
FJD 2.612737
FKP 0.858021
GBP 0.868095
GEL 3.13824
GGP 0.858021
GHS 12.117138
GIP 0.858021
GMD 83.485555
GNF 10036.758052
GTQ 8.903614
GYD 242.698011
HKD 9.101303
HNL 30.553069
HRK 7.534535
HTG 151.765384
HUF 397.487379
IDR 19024.156045
ILS 3.889731
IMP 0.858021
INR 100.6203
IQD 1518.964126
IRR 48830.055939
ISK 142.179875
JEP 0.858021
JMD 186.099911
JOD 0.822092
JPY 172.164804
KES 150.160816
KGS 101.225304
KHR 4661.248586
KMF 492.210097
KPW 1043.562795
KRW 1614.403457
KWD 0.354197
KYD 0.966673
KZT 630.70398
LAK 25010.72947
LBP 103834.532388
LKR 350.214116
LRD 233.062239
LSL 20.767019
LTL 3.423745
LVL 0.701379
LYD 6.272932
MAD 10.502305
MDL 19.546389
MGA 5136.650061
MKD 61.587333
MMK 2434.490605
MNT 4160.050922
MOP 9.379842
MRU 46.171659
MUR 52.619122
MVR 17.858094
MWK 2013.495456
MXN 21.762755
MYR 4.905899
MZN 74.162566
NAD 20.766895
NGN 1773.917789
NIO 42.612046
NOK 11.816915
NPR 160.770608
NZD 1.941601
OMR 0.445755
PAB 1.160007
PEN 4.225853
PGK 4.809087
PHP 66.307978
PKR 328.200949
PLN 4.262805
PYG 8689.430944
QAR 4.221503
RON 5.072527
RSD 117.12491
RUB 94.327804
RWF 1669.701024
SAR 4.349424
SBD 9.606689
SCR 16.398914
SDG 696.288704
SEK 11.144217
SGD 1.491907
SHP 0.911196
SLE 26.668644
SLL 24314.445985
SOS 662.659194
SRD 42.391791
STD 23999.611173
STN 24.81941
SVC 10.151269
SYP 15075.778905
SZL 20.767027
THB 37.672804
TJS 11.049317
TMT 4.069896
TND 3.327764
TOP 2.715703
TRY 47.041873
TTD 7.888775
TWD 34.405171
TZS 2979.952124
UAH 48.521415
UGX 4158.591419
USD 1.159515
UYU 46.49503
UZS 14609.884106
VES 141.382224
VND 30379.282525
VUV 137.515606
WST 3.175893
XAF 652.69755
XAG 0.030388
XAU 0.00035
XCD 3.133646
XCG 2.090704
XDR 0.804019
XOF 648.168331
XPF 119.331742
YER 279.298058
ZAR 20.761851
ZMK 10437.027722
ZMW 27.202157
ZWL 373.363228
  • RBGPF

    3.6700

    77.55

    +4.73%

  • RYCEF

    -0.0500

    13.15

    -0.38%

  • RELX

    -0.9600

    51.77

    -1.85%

  • BTI

    -0.4700

    51.78

    -0.91%

  • SCS

    0.2700

    10.85

    +2.49%

  • RIO

    -0.9100

    62.19

    -1.46%

  • CMSC

    0.0150

    22.5

    +0.07%

  • BP

    0.4700

    32.67

    +1.44%

  • AZN

    -0.8300

    71.83

    -1.16%

  • NGG

    -1.8300

    70.32

    -2.6%

  • SCU

    0.0000

    12.72

    0%

  • GSK

    -0.5200

    37.45

    -1.39%

  • BCC

    -1.4000

    86.74

    -1.61%

  • JRI

    -0.0600

    13.03

    -0.46%

  • CMSD

    0.0100

    22.9

    +0.04%

  • BCE

    -0.3700

    23.83

    -1.55%

  • VOD

    -0.2700

    11.16

    -2.42%


Trump’s 50% tariffs on europe




In a move that has sent shockwaves through global markets, U.S. President Donald Trump has threatened to impose 50% tariffs on imports from the European Union, initially set for June 1, 2025, but later delayed to July 9 to allow for negotiations. This aggressive trade policy has sparked intense debate about its motivations and potential consequences for the European economy, which relies heavily on exports to the United States. The proposed tariffs, described as a tool to reshape global trade dynamics, raise questions about the strategic intent behind such a drastic measure and its implications for transatlantic relations.

The European Union, a key trading partner of the United States, exported goods worth billions to the U.S. in 2024, with sectors like pharmaceuticals, automotive, and luxury goods leading the charge. A 50% tariff would significantly increase the cost of these goods, potentially reducing demand and squeezing profit margins for European companies. For instance, Germany’s automotive industry, including brands like BMW and Porsche, faces heightened risks, as does France’s luxury sector, which employs over 600,000 people. Italy’s high-end leather goods and the European aerospace sector, exemplified by companies like Airbus, could also face severe disruptions. The European Commission has estimated that such tariffs could shave 0.5% off the EU’s GDP, a substantial blow to an economy already grappling with global uncertainties.

Trump’s rationale appears rooted in a long-standing belief that tariffs are a solution to perceived trade imbalances. He has publicly expressed frustration with the EU, accusing it of being “very difficult to deal with” and slow to negotiate. His administration argues that the EU benefits disproportionately from trade with the U.S., a claim that resonates with his domestic base but overlooks the mutual benefits of transatlantic commerce. The president’s strategy seems to leverage tariffs as a negotiating tactic, pressuring the EU to concede to terms more favourable to U.S. interests, such as increased purchases of American goods like soya beans, arms, and liquefied natural gas. The delay to July 9, following a phone call with European Commission President Ursula von der Leyen, suggests a willingness to negotiate, but the threat of tariffs remains a powerful bargaining chip.

Critics argue that Trump’s approach is less about economic fairness and more about political posturing. By targeting the EU, he reinforces a narrative of protecting American jobs and manufacturing, a cornerstone of his economic agenda. His recent announcement to double steel tariffs to 50% and impose 25% tariffs on autos underscores this focus on domestic industry. However, the broader economic fallout could be severe. European officials, including Germany’s Lars Klingbeil, have warned that such a trade conflict harms both sides, endangering jobs and economic stability. The EU has signalled readiness to retaliate with counter-tariffs, potentially targeting U.S. products like Boeing aircraft, which could escalate tensions into a full-blown trade war.

The timing of the tariff threat adds to its disruptive potential. Europe’s economy, while showing resilience in some areas—Germany’s GDP grew unexpectedly in early 2025 due to strong exports—is not immune to external shocks. The uncertainty surrounding Trump’s tariffs has already rattled markets, with European stocks tumbling after the initial announcement before recovering slightly upon the delay. Companies like HP, which cited tariff-related costs as a factor in cutting earnings forecasts, illustrate the ripple effects on global supply chains. Small businesses and consumers, particularly in the U.S., could face higher prices, while European exporters risk losing market share if forced to absorb tariff costs.

Trump’s tariff strategy also faces legal challenges. A U.S. trade court recently ruled that his use of emergency powers to impose tariffs was unlawful, though an appeals court temporarily reinstated them. This legal uncertainty complicates the administration’s plans, yet Trump’s team has hinted at alternative mechanisms, such as invoking a 1930 trade law to bypass judicial rulings. These manoeuvres reflect a determination to press forward, regardless of opposition, aligning with Trump’s broader goal of reshaping the global economic order.

For the EU, the path forward involves balancing diplomacy with resolve. The European Commission, led by Ursula von der Leyen, has committed to fast-tracking trade talks, with negotiations set to intensify in the coming weeks. EU Trade Commissioner Maroš Šefčovič is expected to engage directly with U.S. counterparts, aiming for a deal that could reduce tariffs to zero on industrial goods. However, the EU remains firm in defending its interests, preparing countermeasures should talks falter. The bloc’s unity will be tested as member states like Italy, with leaders like Giorgia Meloni fostering ties with the White House, push for compromise, while others advocate a harder line.

The stakes are high for both sides. A failure to reach an agreement by July 9 could trigger a tariff regime that disrupts supply chains, inflates consumer prices, and erodes economic confidence. For Trump, the tariffs are a high-stakes gamble to assert U.S. dominance in global trade, but they risk alienating a key ally and destabilising an interconnected economy. For Europe, the challenge is to navigate this turbulent period without sacrificing its economic vitality or succumbing to pressure. As negotiations unfold, the world watches closely, aware that the outcome will shape the future of transatlantic trade and beyond.