Trump Threatens Tariffs on EU Goods and iPhones, Shaking Global Markets

On Friday, U.S. President Donald Trump warned that he might impose a 50% tariff on European Union goods starting 1 June. He also threatened a 25% levy on all imported iPhones purchased by American consumers. The statements, made on social media, disrupted global financial markets. Stock indices in the U.S. and Europe fell, the dollar weakened, gold prices rose, and Treasury yields declined due to economic concerns.

Trump’s Threat Escalates Trade Tensions

Trump’s threat followed frustration within the White House over slow progress in trade talks with the EU. He also criticised Apple, urging the company to move production to the U.S. “I expect their iPhones that will be sold in the United States of America to be manufactured and built in the United States, not India or anyplace else,” Trump said in a Truth Social post. Later, speaking to reporters, he added that the proposed tax would also apply to “Samsung and anybody that makes that product.”

He emphasised, “I’m not looking for a deal… We’ve set the deal – it’s at 50%. But again, there’s no tariff if they build their plant here.”

EU, Japan Respond; Apple Faces Pressure

EU Trade Chief Maroš Šefčovič reaffirmed the EU’s commitment to fair trade talks, saying trade “must be guided by mutual respect, not threats.” Dutch Prime Minister Dick Schoof said the EU would likely view the tariff threat as part of ongoing negotiations.

The White House had paused earlier global tariffs announced in April after backlash from investors. Currently, a 10% baseline import tax remains, and Chinese tariffs have been reduced from 145% to 30%.

The EU exported around €500 billion worth of goods to the U.S. last year, including cars, pharmaceuticals, and chemicals. A 50% tariff could raise prices on many of these items.

Japan’s negotiator Ryosei Akazawa said talks with the U.S. were more detailed, but warned, “In negotiations, the party stuck to a deadline usually loses.”

Apple declined to comment, but reports indicate it is shifting iPhone production to India by 2026. Analyst Gil Luria noted, “It is hard to imagine that Apple can be fully compliant with this request from the president in the next three to five years.”