In a move that reignited global trade tensions and rattled financial markets, US president Donald Trump has threatened to impose sweeping new tariffs on European Union (EU) imports and on Apple products. In back-to-back posts on his social media platform Truth Social, president Trump said he would recommend a 50% tariff on all EU imports starting 1 June 2025, claiming that trade talks with Brussels were stalled. He also warned that Apple could face a 25% tariff on iPhones unless the company shifts manufacturing to the US.
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% tariff on the European Union, starting on 1 June 2025,” president Trump wrote. “There is no tariff if the product is built or manufactured in the US.”
The warning came just hours ahead of a scheduled call between European Commission trade chief Maros Sefcovic and US trade representative Jamieson Greer. The European Commission has yet to issue a formal response, but officials indicated they would wait until after the call before commenting. The announcement prompted a sharp sell-off in European equity markets which dropped across the board amid fears of a fresh transatlantic trade war.
President Trump’s remarks mark a dramatic escalation in tensions with the EU, an economic bloc he has repeatedly accused of exploiting the US through unfair trade practices. While the Trump administration has already struck agreements with the UK and China to temper the effects of his broader trade agenda, the EU has remained a prominent target.
In a separate post, the president singled out Apple, demanding that the tech giant manufacture all iPhones destined for the US market within the country or face punitive tariffs. “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the US will be manufactured and built in the United States, not India, or anyplace else,” president Trump stated. “If that is not the case, a tariff of at least 25% must be paid by Apple to the US.”
Apple shares fell more than 2% in premarket trading following the announcement. The iPhone-maker has been gradually diversifying its production operations, with a significant portion of assembly now occurring in India. During a recent earnings call, Apple chief executive officer (CEO) Tim Cook stated he expected the majority of iPhones sold in the US to be made in India going forward.
Mr Cook had previously warned investors that Apple could face up to US$900mn (million) in tariff-related costs this quarter. That figure could grow substantially under president Trump’s latest threat, which directly targets the company’s offshore manufacturing strategy.
President Trump’s aggressive tariff posture also follows his decision to roll back some of the steepest levies on Chinese imports earlier this month, including a reduction in tariffs on most Chinese goods from 145% to 30%. Despite that partial rollback, a 10% universal tariff continues to apply to most imports into the US.
The new threats appear to mark a shift in tone just weeks after a period of relative calm in global trade negotiations. President Trump’s move comes on the eve of the Memorial Day weekend and appears to be an attempt to exert maximum pressure on both international partners and domestic companies ahead of a fresh round of trade talks.
In targeting Apple, president Trump also sends a clear signal to other US tech firms that offshoring manufacturing may no longer be tenable under his administration. While Apple has invested in US-based manufacturing in the past, the scale and complexity of its global supply chain have made full relocation a daunting prospect.
As global markets absorb the shock, attention now turns to the outcome of the scheduled call between senior US and EU trade officials. While it remains unclear whether president Trump’s proposals will be formally adopted, the threat alone has already disrupted business and market expectations.
If enacted, the tariffs could have wide-ranging consequences for transatlantic trade, Apple’s business model and the broader global economy which is still recovering from recent supply-chain disruptions and inflationary pressures.
