Trump issues fresh 50% tariff threat towards EU, specifically focuses on smartphones
In a significant escalation of trade tensions, President Donald Trump threatened the European Union (EU) with a 50% tariff on its goods, effective June 1, 2025. This decision, announced on May 23, sparked concerns about potential global economic disruption and sent Wall Street stocks tumbling.
The EU responded to Trump's announcement with calls for "respect," expressing their intention to pursue a trade deal based on mutual understanding instead of threats. EU Trade Commissioner Maros Sefcovic emphasized the bloc's commitment to securing a deal that benefits both parties.
In addition to the threats towards the EU, Trump criticized American tech giant Apple, echoing promises for a potential 25% tariff on smartphones if they do not move production to the United States. Trump's comments corresponded with a decline in Apple's shares, trading down 2.5%.
Trump defended his tariffs, asserting they would not harm American businesses but rather benefit them. The proposed tariffs promise to raise Washington's current baseline levy of 10%, dramatically escalating simmering tensions between the world's largest economy and its biggest trading bloc.
The trade war with the EU represents the latest development in Trump's ongoing efforts to rebalance global trade. In April 2025, Trump imposed sweeping tariffs on most of the world, including a 20% levy on the EU, triggering market turmoil. Tariffs were temporarily paused for 90 days due to ongoing negotiations.
The EU counters with a potential tariff on U.S. goods worth nearly 100 billion euros ($113 billion) if the U.S. does not lower the duties on European goods. U.S. Treasury Secretary Scott Bessent stated that the 10% tariff rate was contingent on negotiations in good faith, indicating that the current rate may be subject to alteration based on the outcome of discussions between the two parties.
As negotiations continue to unfold, the future of trade relations between the U.S. and EU remains uncertain. However, both parties express a commitment to achieving a mutually beneficial trade agreement to prevent further escalation in the situation.
The business sector keenly followed the EU's response to Trump's tariff threats, with many investors questioning how this could affect finance and technology companies. The EU Trade Commissioner Maros Sefcovic stressed the importance of an investor-friendly agreement to maintain a stable business environment.
Meanwhile, technology news outlets reported a significant drop in Apple's share price following Trump's criticism and threatened tariffs on smartphones. The impact of these potential tariffs on both American and international businesses, particularly those involved in technology and manufacturing, is a topic of general-news concern.
