Trump threatens 50% tariff on EU, delays deadline to July 9

Trump threatened a 'straight 50% tariff on the European Union' effective June 1, 2025, using Section 232 authority that lets him impose tariffs without Congressional approval based on national security claims.

After EU Commission President Ursula von der Leyen called to request an extension, Trump reset the tariff deadline from June 1 to July 9, 2025. He posted on Truth Social: 'I agreed to the extension. It was my privilege to do so.'

The threatened tariffs target $200+ billion in annual EU imports including vehicles ($60.3 billion: Mercedes, BMW, Volkswagen), machinery ($89.8 billion), pharmaceuticals, wine ($1.7 billion sparkling wine), olive oil ($1.8 billion), and electrical machinery ($39.2 billion).

Section 232 of the Trade Expansion Act (1962) allows the President to restrict imports if the Commerce Secretary determines they 'threaten to impair' national security. From 1962-2016, the government conducted 26 investigations but imposed no tariffs. Trump conducted 7 investigations in his first term, imposing tariffs on steel and aluminum.

The EU announced retaliatory tariffs on 26 billion euros ($28 billion) of US goods including bourbon whiskey, peanut butter, beef, poultry, seafood, soybeans, nuts, eggs, dairy, and motorcycles. EU tariffs during Trump's first term caused American whiskey exports to the EU to plunge 20%, from $552 million in 2018 to $440 million in 2021.

Treasury Secretary Scott Bessent told reporters 'I would hope that this would light a fire under the EU' to spur trade concessions. He warned the EU suffers from a 'collective action problem' that hampers negotiations.

On July 27, 2025, von der Leyen and Trump agreed to a framework deal. The US tariff rate on EU autos would drop from 27.5% to 15%, and the EU rate on US autos would drop from 10% to 0%. Steel, aluminum, and copper continue to face 50% Section 232 tariffs.