🎧 Listen to This Article
In a move that sent shockwaves through global markets, U.S. President Donald Trump threatened a 50% tariff on all European Union imports and a 25% levy on imported iPhones and other smartphones not made in the United States. The warning marks a significant escalation in the U.S.–EU trade standoff and a new front in Trump’s push to onshore tech manufacturing.
The president’s remarks, delivered via social media and later reiterated in the Oval Office, rattled investors and deepened fears of a prolonged global trade war. Stocks fell sharply in the U.S. and Europe, the dollar slid, and gold prices surged.
Apple in the Crosshairs
Trump specifically singled out Apple, saying he expected iPhones sold in the U.S. to be built domestically. The proposed 25% tariff would also apply to Samsung and “anybody that makes that product,” he said.
Apple, which produces most of its smartphones in China and India, declined to comment. Analysts warned that such a policy could raise iPhone prices by hundreds of dollars and disrupt global supply chains. Despite Apple’s $500 billion U.S. investment plans, the company has no announced plans to manufacture iPhones in America.
Trump’s move appears to reverse earlier exemptions granted to major tech firms, a potential shift in policy that could reverberate across the consumer electronics industry.
U.S.–EU Trade Relations Fray
Trump reiterated that he’s not seeking a deal with the EU. “We’ve set the deal at 50%,” he said. The 27-member bloc exported €500 billion ($566 billion) in goods to the U.S. last year, led by Germany, Ireland, and Italy, with pharmaceuticals, autos, and aircraft among top categories.
EU leaders, caught off guard by the latest threat, reiterated their preference for negotiation over confrontation.
“EU-US trade must be guided by mutual respect, not threats,” said EU Trade Commissioner Maroš Šefčovič.
“We’ve seen before that tariffs go up and down in talks with the U.S.,” added Dutch Prime Minister Dick Schoof, hinting at the EU’s intent to avoid panic.
Despite tensions, the EU has paused its 25% retaliatory tariffs on $20 billion in U.S. goods but is still consulting on broader measures covering $100 billion in imports.
Global Markets React
- S&P 500 fell 0.8%, Apple shares dropped 3%
- European indices (DAX, CAC 40) declined over 1.5%
- Dollar weakened, gold climbed
- Treasury yields fell on recession fears
With a deadline of June 1 for new tariffs, investors and policymakers are bracing for a volatile run-up.
A Broader Strategy or Brinkmanship?
Analysts suggest Trump’s strategy is to rebalance trade and pressuring companies to relocate production to the U.S. amid a broader effort to decouple from China.
Yet critics warn that simultaneously targeting Apple and the EU could disrupt consumer pricing, tech supply chains, and transatlantic diplomacy without guaranteeing increased domestic manufacturing.
For further details, clarification, contributions, or any concerns regarding this article, please get in touch with us at editorial@tax.news. We value your feedback and are committed to providing accurate and timely information. Please note that our privacy policy will handle all inquiries.
