Donald Trump has threatened to impose 50% tariffs on the European Union next month, as he said trade talks with Brussels are "going nowhere", Sky News reports.
His comments, made on the social network Truth Social, mark a new escalation in his trade dispute with the European Union, which he has previously accused of being designed to rip off the US.
The US has struck deals with Britain and China to ease some of the trade war, but the president's threat to the EU, which would cover all imports from the Union to the US, would risk triggering retaliation from Brussels if carried out.
Trump said of the talks between his administration and the EU: "Our discussions with them are going nowhere! I therefore recommend direct tariffs of 50% for the European Union, effective June 1, 2025. No tariff if the product is created or manufactured in the United States.
The European Commission has yet to respond to the threats. Officials have signaled that there will be no statements until a conversation between leading figures in US-EU trade, which is expected to take place later today.
However, financial markets were quick to give their opinion. European stock markets saw sharp declines across the board.
London's FTSE 100 was more than 1.2% lower, while Germany's DAX and France's CAC 40 were in the red by more than 2%.
U.S. stock market futures showed that similar percentage declines could be expected for the major indices when "Wall Street" opened.
The potential for damage to the global economy sent Brent crude oil down more than 1% to $63 a barrel.
The dollar also took a hit as the news added to already-existing market concerns about the sustainability of U.S. government debt levels.
Trump had earlier said that Apple would be forced to pay a 25% tariff on its iPhones unless it moved all production to the U.S.
Apple shares fell more than 2% in premarket trading after the warning.
Manufacturing of Apple's flagship phone takes place mostly in China and India, an issue President Trump has repeatedly raised.