Donald Trump has once again raised global trade tensions. On Friday, he threatened a 50% tariff on all goods imported from the European Union. He also said that iPhones made outside the US could face a 25% import tax.
This announcement came just hours before critical trade talks between the US and the EU. Previously, Trump had lowered a proposed 20% tariff to 10% to allow room for negotiation. However, he now claims talks are failing.
“Our discussions with them are going nowhere,” Trump stated in a social media post. He said he would recommend implementing the tariffs starting June 1, 2025.
Later, while speaking to reporters, Trump added that only a major European investment in the US could delay the plan. “I’m not looking for a deal—we’ve set the deal,” he insisted.
European leaders reacted with concern but remained firm. France’s foreign minister said the threats were unhelpful. He emphasized the EU would stay on its path but is ready to respond.
Trump’s trade war threatens global stability, and financial markets quickly felt the pressure. US and European shares fell. The S&P 500 dipped by 1%, while Germany’s DAX and France’s CAC 40 dropped over 1.5%.
Apple shares sank 2.7% after Trump hinted all smartphones, not just iPhones, would face tariffs. He said duties could begin by the end of June. This comes despite Apple relocating production from China to India and Vietnam, rather than the US.
Ireland’s prime minister urged continued negotiation. He stressed that escalation would hurt both sides. Germany’s economy minister echoed that sentiment, calling for more trade, not less.
Trump’s trade war threatens global stability by targeting EU goods and singling out tech companies. Analysts believe his rhetoric is aimed at increasing leverage before talks. However, many doubt the EU will shift its approach.
The EU is America’s major trading partner. Last year, it exported over $600 billion in goods to the US. Meanwhile, US exports to the EU reached about $370 billion.
Trump claims this trade imbalance is unfair. He often targets European policies on cars and agriculture. He argues that higher tariffs will protect American jobs and industries.
Despite previous warnings, Trump continues to threaten tariffs. US Treasury Secretary Scott Bessent said the EU’s proposals lacked the quality seen from other countries. He added that Trump hopes to pressure the bloc into further concessions.
This rising conflict casts a shadow over global markets. Businesses remain anxious about supply chains and costs. Trade experts warn that higher tariffs could damage the global economy without achieving Trump’s goals.
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