US President Donald Trump’s threat to impose 50% tariffs on European Union goods has sparked concerns among trade and logistics experts that the move could backfire economically.
European imports are crucial for US manufacturing, which aims to achieve industrial reshoring. A large tariff would increase production costs, making American products more expensive. According to Andy Abbott, CEO of Atlantic Container Line, “A big tariff on European imports will backfire, making American products more expensive to produce.”
The EU has been reluctant to engage in trade negotiations with Trump, and a 50% tariff could further escalate tensions. Timothy Brightbill, partner at Wiley, warned that the move would cause economic harm and potentially lead to retaliation from the EU.
US exporters would also suffer due to reduced trade, as European imports are relatively cheap compared to US exports. The impact of such tariffs would vary across the US, with some states facing a higher tax burden than others.
Experts say that a 50% tariff on EU goods could be equivalent to an effective rate increase of 20-200 times depending on the state. The EU has significant trade barriers, and this negotiation could provide an opportunity for both agricultural and digital trade. However, reaching a consensus will be challenging due to varying views among countries on whether to negotiate.
The US-EU trade relationship had been showing signs of recovery after a drop in bookings from Europe to the US. A new tariff threat may slow down freight orders again, causing significant implications for core US industrial operations.
Source: https://www.cnbc.com/2025/05/23/eu-tariff-will-backfire-on-trump-trade-shipping-experts.html