Overview

• US President Donald Trump has threatened a 50% tariff on EU goods and a 25% levy on smartphones if companies fail to relocate production to the US.
• The EU is preparing countermeasures, including potential tariffs on $107 billion worth of US exports, should negotiations fail.
• German Finance Minister Lars Klingbeil has urged 'serious negotiations,' warning the tariffs would harm both US and European economies.
• EU Trade Commissioner Maroš Šefčovič emphasized that trade relations must be based on 'mutual respect, not threats,' while reaffirming the EU's readiness to defend its interests.
• Global markets have reacted negatively, with stock indices dropping and the US dollar hitting its lowest level since 2023 after the tariff threats were announced.