President Donald Trump has raised the stakes ahead of upcoming trade talks by threatening to impose higher tariffs on goods from the European Union and on Apple products. He announced on Friday that the United States could apply a 50% tariff on all imports from the EU. In addition, he suggested a 25% tax on iPhones that are manufactured outside the United States. These statements came just before scheduled negotiations between US and EU officials.
Previously, Trump introduced a 20% tariff on European goods but later reduced it to 10% to give talks a chance to progress. Now, he says the higher tariffs will start on June 1, 2025. He expressed frustration with the negotiation progress on social media, saying the talks are stalled. The European Union has yet to respond officially to the latest announcement.
Following Trump’s comments, stock markets in both the US and Europe declined. The S&P 500 dropped nearly 1%, while Germany’s Dax and France’s Cac 40 fell more than 1.5%. Apple shares also decreased by over 2% after previously being exempted from some tariffs. Trump has consistently used tariffs as leverage to push for better trade deals since returning to office. He argues tariffs help protect American jobs from foreign competition, but many economists warn that tariffs raise costs and create economic uncertainty.
The European Union remains a major trading partner for the US, exporting more than $600 billion in goods last year while importing around $370 billion from the US. Trump claims the trade imbalance results from unfair EU policies, particularly regarding car imports and agriculture. Last month, he announced a 20% tariff but reduced it to 10% to encourage negotiations. Unlike smaller countries, the EU has taken a firm stance and warned it is ready to respond with tariffs on American products if needed. Trump described the EU as difficult in talks and reiterated the plan to start a 50% tariff in June 2025.
US and European leaders have responded cautiously to the new tariff threats. US Treasury officials said the president hopes the warnings will bring stronger concessions from the EU. French and Dutch officials stressed their commitment to lowering tensions but signaled readiness to act if necessary. Past US-EU trade talks have seen tariffs rise and fall quickly, showing how volatile the situation remains.
Apple is also under pressure due to Trump’s demands. The president has urged Apple to move more of its production back to the US. He met with Apple CEO Tim Cook recently as Apple announced plans to shift some iPhone manufacturing from China to India and Vietnam. Trump’s new tariff threat includes a 25% tax on iPhones made abroad, reflecting his frustration with the company’s overseas production.
Trade experts believe these tariff threats are part of a negotiation strategy. Since no formal order has been signed, the announcements serve as warnings. Analysts say the EU is unlikely to give in easily and expect the talks to be challenging.
With the June 1 deadline approaching, businesses and governments are watching closely. If new tariffs take effect, they could raise prices and increase trade tensions globally. The outcome of the upcoming talks will have a significant impact on US-EU trade relations in the years ahead.