Trump Threatens Tariffs on EU Products, Apple iPhones Amid Trade Tensions

What Happened?

President Donald Trump recommended new tariff measures for the European Union after complaining trade negotiations have recently stalled.

In a post on Truth Social Friday, President Trump threatened a straight 50% tariff on the EU that would begin on June 1.

He stated the EU has 'been very difficult to deal with' and that trade discussions 'are going nowhere.'

'Their powerful trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against American companies, and more, have led to a trade deficit with the U.S. of more than $250,000,000 a year,' the president said.

Trump’s EU announcement came less than 30 minutes after he threatened to impose at least 25% levies on Apple's iPhones.

The threat came over Apple not beginning iPhone manufacturing in the U.S. Trump envisions.

'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 on Truth Social. 'If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.'

The U.S. and EU stock markets reportedly sank immediately following the posts.

Why it Matters

Friday's developments come as a reversal in momentum for Trump, who recently celebrated preliminary trade deals with the U.K. and China.

China and the U.S. agreed to roll back on each other's trade levies for an initial 90-day period.

The announcement came as the second bilateral agreement that Trump unveiled since coming to terms with the U.K.

It marked a surprising breakthrough to de-escalate a global trade war.

Markets were encouraged by the moves, as investors felt relief from the economic uncertainty and instability Trump’s tariffs had threatened to create.

U.S. Treasury Secretary Scott Bessent told Fox News Friday that Trump believed the EU proposals had not been met with the same quality as other important U.S. trading partners.

'I would hope that this would light a fire under the EU,' Bessent said in response to whether the EU will negotiate before the tariff measure kicks in.

How it Affects You

The U.S. ran a $236 billion trade deficit with the EU last year, according to released data.

Trump and his administration accused Europe of taking unfair advantage of the U.S. through trade for quite some time.

All options appear open for the EU, which leaves matters very unpredictable in how they respond.

As for iPhones, Cook had reportedly said that Apple, to pay a lower tariff, would relocate production for the U.S. to India from China.

Trump's frustrations, however, follow patterns that have pressured major automakers, pharmaceutical companies, and chipmakers to shift production to the U.S.

Although these attempted moves could increase costs for U.S. consumers, Trump remains optimistic while many raise fears of a global economic downturn.