U.S. President Donald Trump has escalated trade tensions, announcing plans to impose a 50% tariff on imports from the European Union beginning June 1. Posting on Truth Social, Trump criticized ongoing negotiations with the EU as unproductive and said the bloc was “formed to take advantage of the United States on trade.”
He also renewed threats against Apple, warning of a 25% tariff on the tech giant for not relocating iPhone production to the U.S. “Apple has refused to make iPhones in America despite my repeated requests,” he wrote.
The announcement sent ripples through financial markets. Apple shares dropped over 3% in pre-market trading, and the VIX volatility index spiked more than 20%.
Trump’s move follows last month’s sweeping tariffs targeting various sectors, including steel, aluminum, and automobiles. While he temporarily eased general duties to 10% for 90 days to allow for talks, tensions with the EU have intensified. Brussels has threatened retaliatory tariffs on U.S. goods worth nearly €100 billion.
An EU spokesperson declined immediate comment but confirmed a call between EU Trade Commissioner Maros Sefcovic and U.S. Trade Representative Jamieson Greer was scheduled.
On Apple, analysts remain skeptical of Trump’s demands. “Shifting iPhone production to the U.S. is unrealistic,” said Wedbush Securities’ Dan Ives. “Doing so could push iPhone prices to around $3,500 and take a decade to implement.”
