US President Donald Trump has threatened the European Union with tariffs of up to 35% if the bloc fails to invest in the American economy as promised. The ultimatum has thrown Brussels into disarray, as many view the idea of injecting hundreds of billions of dollars into US industry as economically unfeasible.

Trump reminded the public that he had already halved tariffs on the EU from 30% to 15% in good faith, expecting European countries to put $600 billion into the US economy. However, that goodwill could quickly vanish, he warned. If the EU refuses to invest, the White House is prepared to reinstate punitive trade measures.

Notably, the Trump administration has already authorized tariffs of 35% or even more for a number of countries, including EU members. For example, duties on imports from Switzerland have climbed to 39%.

However, EU officials remain tight-lipped about the investment pledges Trump references. The European Commission has yet to confirm any formal commitment to the vast outlays the US president demands. Skepticism is growing among Europe’s political class. In Brussels, policymakers say that the Commission cannot legally compel European firms to purchase $750 billion in US energy exports or invest $600 billion into American infrastructure. Still, EU leaders have pledged to "engage in dialogue" with European corporations in hopes of nudging them toward investing in the American economy.