Overview

• President Trump has formally proposed a 50% tariff on all European Union goods, effective June 1, intensifying the ongoing trade conflict.
• European stock markets dropped significantly following the announcement, reflecting fears of economic disruption in key export sectors.
• The EU, whose largest export partner is the U.S. at 20.6% of exports, faces vulnerabilities in pharmaceuticals, automotive, aerospace, alcohol, cosmetics, and luxury goods industries.
• Major European companies, including automakers and luxury brands, are reassessing operations and pricing strategies to mitigate the potential impact of these tariffs.
• EU officials and industry leaders are calling for urgent negotiations to avoid further economic fallout and a wider trade war.