TARIFFS: US' Bessent-Hope 50% Tariff Rate 'Lights Fire Under EU' To Reach Deal

Speaking to Fox News, US Treasury Secretary Scott Bessent says that President Donald Trump "believes EU proposals [on trade and tariffs] have not been of good quality". Says the Trump move to impose 50% tariffs on the EU is in response to the Union's slow pace in talks. Bessent: "We hope this lights a fire under the EU....the EU has a collective action problem." Bessent claims that the "US is far along in trade talks with India and other Asian countries...most countries are negotiating in good faith except the EU." Says that the deals are "moving quickly", and that "We will see more deals announced within the 90-day period [during which 'reciprocal' tariffs are suspended]". 

• In reaction to Trump's escalation, German Foreign Minister Johann Wadephul says the German gov't "Fully supports the European Commission, such tariffs help nobody." Says that "both markets would suffer [from tariffs], that's why we want further negotiations...We support the Commission to defend the European market". The EU has E95B in retaliatory tariffs on US goods ready to go (these were suspended after the 90-day pause), but the 50% rate threatened by Trump could see the EU consider an even harsher response (if indeed the US tariffs materialise).
• Speaking at an Axios event on 22 May, Commerce Secretary Howard Lutnick said that some trade negotiations had been "impossible". Lutnick “Like the European Union — it’s just very difficult because, you know, Germany would like to make a deal, but they’re not allowed,”