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Bessent: Trump's tariff threat could ignite a fire in the EU during trade negotiations

Treasury Secretary Scott Bessent stated on Friday that Donald Trump believes that the European Union’s trade offers are not of high enough quality. He hopes that a 50% tariff threat by June 1 will "light up the EU" during negotiations with Washington.

Bessent said to Fox News Channel, that other major U.S. trading partner are in good faith negotiating with the EU.

Trump intensified his trade war on Friday, saying he "recommended" a tariff of 50% on EU goods beginning on June 1. Trump warned Apple he could impose a tariff of 25% on any iPhones made outside the U.S.

Bessent made the shocking announcement a day after he concluded meetings with G7 finance leaders including Valdis Dombrovskis, Executive Vice President of the European Commission. The G7 Ministers Meeting in Banff Alberta

Papering over deep divisions

On Trump's tariffs, reach agreement on the efforts to reduce "excessive balances" in global economy.

The conversation in

Canada

The problem was the lead-up to that," Bessent said. Bessent: "The problem was in the lead-up to that."

He told Fox News other countries had made good-faith trade offers and that some talks had been advanced with them.

Some Asian countries have come up with "very interesting" proposals.

Bessent stated, "I believe that the president feels that the EU's proposals are not of the same standard as those we have seen from other important trading partners."

He stated that he is getting feedback from certain EU countries that they do not know about the proposals coming from Brussels by the European Commission.

Bessent stated, "I won't be negotiating on television but I hope this will ignite a fire in the EU." "The EU is having a problem with collective action." This group represents 27 countries in Brussels.

Bessent stated that Trump was interested in bringing precision manufacturing, including semiconductors, back to the United States.

"I believe that this external production is one of our biggest vulnerabilities, especially in semiconductors. Bessent added that a significant portion of Apple's components is in semiconductors. We would like Apple to help us secure the semiconductor supply chain.

(source: Reuters)