Trump reignites tensions with EU tariff threats

WASHINGTON (  WEB  NEWS  )

US President Donald Trump reignited trade tensions on Friday, threatening a 50% tariff on all goods sent to the United States from the European Union.

He also warned Apple that he would impose a 25% import tax “at least” on iPhones not manufactured in America, later widening the threat to any smartphone.

The warning against the EU came just hours before the two sides were set to have trade talks. Trump last month announced a 20% tariff on most EU goods, but had halved it to 10% until 8 July to allow time for negotiations.

In a statement after the talks, the EU said it remained committed to securing a deal, while warning again that it was prepared to retaliate.

In remarks to reporters at the White House on Friday afternoon, Trump expressed impatience with the pace of negotiations, saying his plan to raise tariffs on 1 June was set.

“I’m not looking for a deal – we’ve set the deal,” he added, before immediately adding that a big investment in the US by a European company might make him open to a delay.

“We’re going to see what happens but right now it’s going on on June 1st,” he said.

Analysts said it remained to be seen whether Trump’s rhetoric would turn into reality.

Trade expert Aslak Berg from the Centre for European Reform told the BBC that he thought Trump’s post was intended to increase leverage ahead of the negotiations.

“But the fact of the matter is the EU is not going to budge. They are going to stay calm, carry on and it will be a very difficult discussion,” he said.

He added that Trump’s re-escalation of tariffs set a bad precedent for other deals the US might be working on.

“For a while there was this perception … that Trump was backing off, that we would have a bit of quiet and stability. This shows that is not at all the case,” he said.