Washington, D.C., May 24, 2025 — Former President Donald Trump reignited global trade tensions on Friday by announcing plans to impose a 50% tariff on all European Union imports beginning June 1, along with a 25% tax on smartphones not manufactured in the United States—targeting Apple and other major tech companies.
In a post on social media, Trump criticized the EU for what he described as stalled trade negotiations and unfair treatment of American products.
“Our discussions with them are going nowhere,” Trump wrote, accusing the EU of placing unjust restrictions on U.S. goods.
Tariff Warning to Apple and Smartphone Makers
Trump also renewed his long-standing demand that Apple manufacture iPhones in the U.S., warning that foreign-assembled smartphones would soon face steep tariffs. He claimed he had previously informed Apple CEO Tim Cook of the expectation to move production stateside.
Apple has been relocating much of its iPhone assembly to India, aiming to diversify away from China. However, the company has not indicated plans to shift production to the U.S. Analysts warn that such a move could significantly increase iPhone prices, potentially by hundreds or even thousands of dollars.
Trump later clarified that the proposed 25% tariff would apply broadly to all smartphones made outside the U.S., including those from Samsung and other manufacturers. The tariffs could take effect as early as late June.
Impact on EU and Global Markets
The EU exported approximately $500 billion in goods to the U.S. last year, with top exports from Germany, Ireland, and Italy including automobiles, pharmaceuticals, and aircraft. A 50% tariff would dramatically raise costs for American importers and consumers.
EU Trade Commissioner Maroš Šefčovič urged restraint and called for “mutual respect” in ongoing trade talks. Dutch Prime Minister Dick Schoof acknowledged the announcement, noting that similar tariff threats have been part of past U.S. negotiating tactics.
Market Reaction
Financial markets reacted sharply to the news. U.S. and European stock indices fell, Treasury yields dropped, and gold prices rose as investors sought safer assets. Apple’s stock declined 3% amid concerns over potential cost hikes and supply chain disruptions.
Trump’s aggressive trade posture has revived fears of extended economic volatility at a time when global markets had begun to stabilize.
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