Donald Trump Threatens European Union with 50 Percent Trade Tariffs Amid UK’s Controversial Brexit Reset Deal in London

Just as the UK government was touting a fresh deal to “reset” ties with the European Union, Donald Trump threw a spanner in the works—with a bold threat that’s sending shockwaves through both economic and political circles.

The U.S. President has warned that starting next month, he’s planning to slap the EU with a punishing 50% trade tariff.

And if things unfold the way critics fear, Britain could be caught in the crossfire.

Starmer’s Reset Plan Sparks Worries Over Brexit Backtracking

Prime Minister Keir Starmer recently introduced a new agreement aimed at improving the UK’s relationship with the EU—the closest alignment the UK has had with Brussels since Brexit.

Supporters call it a smart move to rebuild trust and cooperation.

But critics, especially Brexiteers, are sounding the alarm bells.

They’re accusing Starmer of quietly pulling Britain back into the EU’s orbit, hinting that this could be a step toward rejoining structures like the customs union or the single market.

Why the U.S. Tariff Threat Could Hit the UK Too

Here’s the catch: if Britain starts moving closer to EU rules and frameworks, particularly on trade, it might be viewed by the U.S. as part of the EU bloc.

That could mean any tariffs Trump slaps on Europe could also hit British goods.

And with Trump clearly signaling he’s in no mood for compromise, the risk is very real.

“Surrender Pact” or Sensible Agreement?

Starmer’s deal has been dubbed a “surrender pact” by some critics.

Under this agreement, the UK accepted EU food safety rules (known as the Sanitary and Phytosanitary or SPS standards), agreed to let EU fishing boats operate in British waters for another 12 years, and signed up for a youth mobility scheme that allows more young Europeans to live and work in the UK.

Former Conservative leader Sir Iain Duncan Smith didn’t mince his words.

“This week, he stupidly handed us back to the EU on SPS,” he said.

“This 50% tariff should be a wake-up call that getting directly back involved with the EU is a mistake.”

Markets React as Trump’s Tariff Threats Shake Confidence

The financial world didn’t take the news lightly.

The FTSE 100 dropped by 0.24%, losing 21.29 points. But European markets took a bigger hit—Germany’s Dax fell 1.5%, while France’s Cac 40 slid 1.7%.

Even U.S. markets saw declines as traders reassessed what Trump’s threats could mean for global trade dynamics.

Market analysts say the announcement has wiped away recent optimism that Trump’s trade war era was behind him, especially after earlier deals with China and the UK seemed to signal a softer tone.

Trump’s Rationale: The EU Has “Taken Advantage” of America

On his Truth Social platform, Trump made it clear he thinks the EU has been exploiting the U.S. economically.

“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” he wrote.

He’s calling for a “straight 50 per cent tariff” on EU imports starting June 1, 2025.

And with the EU exporting about €500 billion (roughly £420 billion) worth of goods to the U.S. last year—led by Germany with €161 billion—this isn’t just talk.

If enforced, it would be a major blow to transatlantic trade.

Trump Takes Aim at Apple in the Same Breath

It wasn’t just the EU on Trump’s radar. He also took a swipe at Apple, demanding that the tech giant bring iPhone manufacturing back to the U.S.

“If that is not the case, a tariff of at least 25 per cent must be paid by Apple,” Trump declared.

The result? Apple’s stock took a nearly three per cent tumble.

Brexiteers Say the UK Should Be Glad It’s Out

For many pro-Brexit voices, Trump’s tariff threats are simply more proof that Britain made the right call by leaving the EU.

Tory MP Mark Francois, who chairs the European Research Group, said, “President Trump has always been sceptical about the EU as an organisation.

His imposition of major tariffs highlights yet another reason why we’re well out of it.”

What Happens Next?

With Starmer trying to build bridges to Brussels and Trump threatening to blow them up from across the Atlantic, the UK finds itself in a delicate spot.

Will the Prime Minister continue pushing closer ties with the EU, even if it risks triggering U.S. retaliation? Or will growing pressure from Brexiteers and global markets force a rethink?

Only time will tell how this political and economic balancing act plays out—but one thing’s clear: the UK is once again stuck in the middle of two powerful forces pulling in opposite directions.