US President Donald Trump has threatened sweeping 50 percent tariffs on imports from the European Union starting June 1, citing a breakdown in trade negotiations. In a parallel move, he warned of a 25 percent levy on Apple’s iPhones made outside the US, intensifying pressure on both international partners and domestic companies.
Taking to social media on Friday, Trump explained his stance on Apple: “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” he wrote.
“If that is not the case, a tariff of at least 25 percent must be paid by Apple to the US.”
The twin threats triggered sharp declines in global markets. The S&P 500 fell 0.67 percent, while Apple shares dropped 3.02 percent. European bourses also suffered broad losses.
The announcement underscored Trump’s continued hardline approach to trade, particularly with long-standing partners like the EU.
Trump previously imposed 20 percent tariffs on EU goods during his “Liberation Day” measures announced in April, later scaling them back to 10 percent. On Friday, he raised the stakes further, asserting the EU was established “to hurt the United States”.
“They sell millions and millions of cars—Mercedes, BMW, Volkswagen and many others—into the US. Meanwhile, we were essentially restricted from selling cars into the EU, which is not nice,” he said.
Trump ruled out a renegotiation of trade terms with Brussels, saying: “I’m not looking for a deal—we’ve set a deal. It’s at 50 percent.”
However, he signalled that European companies could avoid tariffs by investing in US-based manufacturing. “There is no tariff if they build their plant here,” he said.
Similarly, he reiterated that Apple could be exempt if it moved production to the US. Referring again to his conversations with Cook, Trump said the Apple chief had mentioned plans to build plants in India. “That’s OK to go to India, but you’re not going to sell into here without tariffs.”
Trump’s tariff push comes as China steps up diplomatic outreach to the EU. In recent days, Chinese Foreign Minister Wang Yi has met his counterparts from the Netherlands, Germany, Poland and Denmark, appealing for stronger ties and joint resistance to protectionism.
Chinese President Xi Jinping also held a call with French President Emmanuel Macron on Thursday, during which the two leaders pledged cooperation on global challenges. Macron voiced concerns over Chinese restrictions on French cognac exports, calling for fair competition.
Trump’s latest announcement appears to stem from frustration over stalled talks. “Our discussions with them are going nowhere!” he posted on social media.
“Therefore, I am recommending a straight 50 percent tariff on the European Union, starting on 1 June 2025. There is no tariff if the product is built or manufactured in the United States.”
According to US government data, trade in goods with the EU totalled $975.9 billion in 2024, with a US trade deficit of $235.6 billion. By contrast, trade with China stood at $582.4 billion, with a $295 billion deficit. The US runs a modest services surplus with both partners.
Trump’s renewed attack on Apple comes despite a temporary truce. On April 12, the administration exempted smartphones, computers and some other electronics from reciprocal tariffs, including the 125 per cent levy on Chinese imports.
Still, Apple remains heavily reliant on overseas manufacturing. An estimated 80 to 90 percent of iPhones sold in the US are made in China, with the rest produced in India and Vietnam.
The company is accelerating efforts to shift production to India, aiming to manufacture the majority of US-bound iPhones there by the end of 2026 to reduce exposure to US-China tensions.
Analysts have warned of steep cost increases if Apple relocates production to the US. It's estimated that the price of an iPhone could surge from $1,000 to $3,500 if fully made in America.
Apple now finds itself alongside Amazon, Walmart and other major US firms navigating the inflationary pressures and uncertainty created by Trump’s tariff regime.
Trump’s threats against Apple and the EU come just weeks after Washington and Beijing reached a deal in Geneva to reduce reciprocal tariffs. Under the agreement, the US lowered additional levies to 30 percent, while China dropped its own to 10 per cent.
However, Washington has yet to secure similar agreements with other key allies. While talks with the EU remain stalled, Japan is preparing for a fourth round of negotiations, with chief tariff negotiator Ryosei Akazawa scheduled to visit the US on 30 May.
The slow progress highlights the complexity of global trade diplomacy—despite Trump’s earlier vow to strike “90 deals in 90 days”.
