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    Home » Business & Economy » Trump threatens 50% tariffs on EU goods, demands 25% import tax on iPhones
    Business & Economy

    Trump threatens 50% tariffs on EU goods, demands 25% import tax on iPhones

    Michael WandatiBy Michael WandatiMay 23, 20254 Mins ReadNo Comments
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    Trump threatens 50% tariffs on EU goods, demands 25% import tax on iPhones
    President Donald Trump has threatened to impose a 25% tariff on Apple iPhones unless production is moved to the United States.

    WASHINGTON D.C., United States — U.S. President Donald Trump has announced his recommendation for a 50% tariff on all goods imported from the European Union into the United States, citing stalled trade negotiations.

    “Our discussions with them are going nowhere!,” he declared in a social media post on Friday, setting a proposed implementation date of June 1st.

    This announcement marks a significant escalation in Trump’s ongoing trade dispute with the EU. Initially, he had proposed a 20% tariff on most EU goods, which was temporarily reduced to 10% until July 8th to facilitate further negotiations.

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    In addition, President Trump threatened a “at least” 25% import tax on iPhones not manufactured in the United States.

    “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump stated. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

    Trump threatens 50% tariffs on EU goods, demands 25% import tax on iPhones
    Trump threatens Apple with 25% tariff on iPhones.

    Analysts have cautioned that the realization of these threats remains uncertain.

    A tariff is a domestic tax imposed on imported goods, calculated as a percentage of their value, and paid by the importing business.

    Since returning to the White House, Trump has consistently imposed and threatened tariffs on goods from various countries, viewing them as a means to bolster U.S. manufacturing and protect domestic jobs from foreign competition.

    The prospect of increased tariffs on U.S. imports has caused concern among global leaders, as it would make exporting goods to the world’s largest economy more costly and challenging.

    “Stay calm, carry on”

    The EU has not yet issued a formal response to Trump’s latest threat, which coincides with scheduled trade talks between the two entities. Trade expert Aslak Berg from the Centre for European Reform suggested that Trump’s post was likely intended to increase his negotiation leverage.

    “We have to keep in mind that at this point, this is a threat. It’s not an announcement. There is no executive order,” he said. “But the fact of the matter is the EU is not going to budge. They are going to stay calm, carry on and it will be a very difficult discussion this afternoon.”

    Following Trump’s threats, U.S. and EU stock markets experienced declines on Friday, with the S&P 500 falling by approximately 1% and Germany’s Dax dropping by over 1.7%.

    Apple’s shares, which had previously been exempted from tariffs on key electronics, including smartphones, opened more than 2% lower.

    “Going nowhere”

    President Trump has repeatedly expressed his desire to reduce the U.S.’s longstanding trade deficit with the EU, which occurs when a country imports more goods than it exports. He attributes this deficit to policies he considers unfair to American companies.

    On Friday, Trump described the EU as “very difficult to deal with” and asserted that the bloc was formed “for the primary purpose of taking advantage” of the United States on trade.

    “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” he added. He clarified that products manufactured in the United States would be exempt from the proposed tariffs.

    Also Read: US-EU Trade War Escalates: Trump Threatens 200% Tariff on European Wines, Alcohol

    Trump has particularly criticized the EU’s car exports to the U.S., especially from Germany, noting the imbalance in vehicle shipments between the two regions. In response to Trump’s threat, Volvo’s CEO, Hakan Samuelsson, stated that customers would bear a significant portion of the increased costs resulting from the tariffs.

    He told Vivid Voice News that a 50% tariff would hinder the company’s ability to sell its Belgium-made EX30 electric vehicle in the U.S. However, he expressed optimism that a trade deal would be reached soon, stating, “It could not be in the interest of Europe or the US to shut down trade between them.”

    While some higher tariffs have been temporarily suspended by Trump, foreign-made cars have faced a 25% levy since April.

    Trump’s warning to Apple comes after the tech giant announced its shift in production of iPhones and other devices intended for the U.S. market away from China.

    Apple CEO Tim Cook revealed earlier this month that the majority of iPhones destined for the U.S. market in the coming months will be manufactured in India, with Vietnam serving as a major production hub for items like iPads and Apple Watches.

    Donald Trump EU Retaliates Trump Tariffs European Union (EU) Global Trade iPhones Tariff Wars Trade War Trump Tariffs United States US Tariffs Impact on Developing Countries
    Michael Wandati
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    Michael Wandati is an accomplished journalist, editor, and media strategist with a keen focus on breaking news, political affairs, and human interest reporting. He is dedicated to producing accurate, impactful journalism that informs public debate and reflects the highest standards of editorial integrity.

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