Trump 'recommending' 50% tariff on EU, and threatens Apple with 25% tariff

US president Donald Trump reignites trade war with threat to impose high tariffs on European goods

Fri, 23 May, 2025 - 13:13

Phillip Inman

Donald Trump has said he will impose a 50% tariff on all EU imports to the US from 1 June after saying trade talks between the two trading blocs were “going nowhere”.

In a surprise announcement, the US president posted on his Truth Social platform that his long-running battle to secure concessions from the EU had run aground.

He accused the EU of taking advantage of the US on trade, saying: “Our discussions with them are going nowhere! Therefore I am recommending a straight 50% Tariff on the European Union, starting on 1 June 2025.”

Stock markets slumped in response to the post, with S&P 500 futures down by 1.5% before the New York market opening. The STOXX Europe 600 index fell by 1.7%.

The US imposed a 20% “reciprocal” rate on most EU goods on 2 April, but halved that rate a week later until 8 July to allow time for talks. It has retained 25% import taxes on steel, aluminium and vehicle parts and is threatening similar action on pharmaceuticals, semiconductors and other goods.

“This is a major escalation of trade tensions,” said Holger Schmieding, the chief economist at Berenberg, on Friday.

“With Trump you never know but this would be a major escalation. The EU would have to react and it is something that would really hurt the US and European economy.”

EU negotiators have been locked in meetings with White House representatives since Trump’s “liberation day” tariffs were first announced. Dozens of nations have been holding discussions to try to bring down their own levies before the 90-day pause elapses.

It comes as Mr Trump said Apple would have to pay a 25% tariff if phones sold in the country were not made within its borders.

Shares of Apple dropped 2.5% in premarket trading on Mr Trump's warning, dragging down US stock index futures lower.

"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," Trump said in a post on Truth Social.

"If that is not the case, a Tariff of at least 25% must be paid by Apple to the US."

It is not clear if Trump can levy a tariff on an individual company. Apple did not immediately respond to a request for comment.

The White House has relented on many of its most onerous tariffs, including lowering total tariffs on Chinese goods from 145% to 30% after what Trump declared were constructive talks with Beijing, which lowered its retaliatory border taxes from 125% to 10% in response.

A week ago the US president appeared to acknowledge that Washington lacked the ability to negotiate deals with scores of countries at once, saying the US would instead send letters to some trading partners to unilaterally impose new tariff rates.

Perceptions of an easing back on a hardline approach to trade brought a period of calm to stock markets, but Friday’s threat of a 50% levy on EU goods, plus a separate threat made the same day of 25% tariffs on iPhones made abroad, have brought an end to the peace.