Silke Mayr US President Donald Trump intensified trade disputes with the European Union on Friday by threatening to impose a 50% tariff on all goods imported from the EU. Additionally, he warned of a 25% import tax on iPhones not assembled in the United States. These announcements came just hours before planned US-EU trade talks, signaling a tough stance amid stalled negotiations. Trump declared via social media that talks were failing and said the new tariffs would begin on June 1 if no progress is made.
Previously, Trump had reduced a 20% tariff on most EU imports to 10%, granting a temporary reprieve ahead of discussions. That grace period is due to expire on July 8, increasing pressure for a deal. The US accuses the EU of exploiting trade imbalances, with America importing over $600 billion in goods from Europe last year, while exporting $370 billion in return.
European officials did not respond immediately to Trump’s threats but signaled they would remain firm. Experts suggest the president’s statements aim to strengthen US negotiating leverage. A European policy analyst said, “This remains a threat, not formal policy,” adding that the EU is unlikely to yield under pressure. “The road ahead looks difficult, but talks will continue,” he noted.
Markets in both the US and Europe reacted swiftly to the rising tensions. The S&P 500 fell about 1% on Friday, while Germany’s Dax and France’s Cac 40 dropped over 1.5%. Shares of Apple declined more than 2% after Trump’s specific mention of tariffs targeting iPhones assembled outside the US. Apple had previously been exempted from tariffs on key electronics but now faces renewed uncertainty as the company shifts production to India and Vietnam.
Trump has frequently used tariffs to protect US manufacturing jobs but has faced criticism from business leaders for the resulting market volatility. Treasury Secretary Scott Bessent said the administration hopes the new tariff threat will lead the EU to offer stronger concessions. “I believe this will push the EU to come back with better proposals,” he stated.
European leaders called for calm amid the dispute. French Foreign Minister Laurent Saint-Martin described the US approach as unhelpful and emphasized the EU’s readiness to respond if necessary. Dutch Prime Minister Dick Schoof affirmed the EU’s commitment to steady negotiations.
The growing trade conflict has particularly targeted Apple. Trump urged the company to manufacture more devices in the US but has seen limited success. His recent meeting with Apple CEO Tim Cook followed the company’s decision to move some production out of China, which Trump criticized.