WASHINGTON: US President Donald Trump has reignited fears of a global trade war after threatening to impose sweeping tariffs on the European Union (EU) and American tech giant Apple, triggering market turbulence and sharp responses from European leaders.
In a post on his Truth Social platform, Trump announced he was recommending a 50 percent tariff on all European Union goods entering the United States from 1 June, citing a lack of progress in trade negotiations with Brussels.
Trump also warned that Apple could face a 25 percent import levy on all iPhones bought by US consumers but manufactured abroad.
The double-barrelled threat sent shockwaves through financial markets. US and European stock indexes fell, the dollar weakened, and gold prices climbed as investors sought safer assets.
Yields on US Treasury bonds also declined amid concerns that the tariffs could harm economic growth.
Speaking later from the Oval Office, Trump defended his stance, saying he was not seeking a deal with the EU.
We’ve set the deal – it’s at 50 percent,” Trump told reporters. “I’m not looking for a deal. But again, there’s no tariff if they build their plant here.”
He accused the EU of treating the US unfairly in trade, particularly in the automobile sector.
“They don’t let us sell our cars, but they flood our market. It’s time that we play the game the way I know how to play it,” he added.
Trump’s remarks were met with swift backlash from Brussels. EU Trade Commissioner Maros Sefcovic said in a post on X (formerly Twitter) that he had spoken to US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick about the issue.
Spoke w @jamiesongreer & @howardlutnick. The EU's fully engaged, committed to securing a deal that works for both. @EU_Commission remains ready to work in good faith. EU-US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests. pic.twitter.com/RfIo5K4aus
— Maroš Šefčovič🇪🇺 (@MarosSefcovic) May 23, 2025
“The EU is fully engaged, committed to securing a deal that works for both,” Sefcovic wrote, adding that “EU-US trade must be guided by mutual respect, not threats. We stand ready to defend our interests.”
German Economy Minister Katherina Reiche said it was essential that the European Commission reach a negotiated solution with the US, while French Foreign Minister Laurent Saint-Martin warned that although the bloc preferred de-escalation, it was “ready to respond.”
Dutch Prime Minister Dick Schoof, speaking to reporters in The Hague, expressed cautious optimism, saying the EU would likely view Trump’s tariff threat as part of a broader negotiation tactic.
“We have seen before that tariffs can go up and down in talks with the US,” he noted.
The European Union, home to nearly 450 million people, is the world’s largest trading bloc and one of the US’s key commercial partners.
In 2024, the EU exported goods worth over $600 billion to the US, led by pharmaceuticals, vehicles, chemicals, and aircraft, while importing goods worth around $370 billion.
If imposed, the 50 percent tariff would place a significantly higher burden on European exporters compared to Chinese goods, which Trump previously targeted with a 145 percent levy—recently reduced to 30 percent to allow negotiations with Beijing to resume.
The proposed tariff on Apple represents Trump’s latest effort to pressure American multinationals to bring manufacturing back to US soil.
He said the measure would also apply to “Samsung and anybody that makes that product,” referring to smartphones.
While Trump claimed he had told Apple CEO Tim Cook “long ago” to move iPhone production to the US, analysts say such a shift would be difficult.
According to D.A. Davidson & Co. analyst Gil Luria, “It is hard to imagine that Apple can be fully compliant with this request from the president in the next 3–5 years.”
Apple shares fell 3 percent after the announcement. The company declined to comment on Trump’s threat, but insiders confirmed that Cook had met Trump earlier in the week.
Although Apple has announced plans to invest $500 billion in the US over four years, that commitment does not include relocating iPhone manufacturing from India or China to American factories.
The company has accelerated efforts to manufacture most iPhones in India by 2026 to navigate shifting tariff landscapes.
This is not the first time Trump has threatened Apple. On 15 May, he warned the company against moving more production to India.
Yet the US currently lacks the capacity to mass-produce smartphones, and any shift would likely increase consumer prices by hundreds of dollars.
Meanwhile, talks with Japan appeared more constructive. Japan’s top trade negotiator Ryosei Akazawa described his discussions with US officials on Friday as “franker and more in-depth than before,” though he cautioned against rushing to secure a deal at next month’s G7 summit in Canada. “Our country has national interests that must be protected,” he told reporters.
As the 90-day pause on reciprocal tariffs winds down in July, US Treasury Secretary Scott Bessent indicated that more trade announcements may follow.
However, he declined to comment on the potential outcomes of negotiations with other major partners.
Kathleen Brooks, research director at XTB, said the risk of a prolonged trade dispute with Europe remains high.
“The EU is one of Trump’s least favourite regions, and he does not seem to have good relations with its leaders,” she said.
