Trump targets EU with 50% tariffs, Apple with 25% penalties as US trade war intensifies

On Friday, May 23, 2025, President Donald Trump issued a stark warning that he would impose a 50% tariff on all European Union imports and a 25% tariff on Apple products.

This is unless iPhones are manufactured in the United States, according to Trump.

The announcement, made via social media, showcased Trump’s power to shake global markets with a few keystrokes.

However, it also underscored that his previous tariff policies have not yet delivered the desired trade deals or the resurgence in domestic manufacturing he has promised.

Trump argued that goods from the EU, a traditional U.S. ally, should face higher import duties than those from China.

This is despite geopolitical tensions with Beijing.

This statement came just after the U.S. reduced tariffs on China to 30% to facilitate negotiations.

Frustrated with stalled talks with the EU, Trump rejected their offer of mutually eliminating tariffs.

He rather insisted on keeping a 10% baseline levy on most EU imports.

“Our discussions with them are going nowhere!” Trump posted on Truth Social.

“Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.

There is no Tariff if the product is built or manufactured in the United States.”

His social media post also included a direct warning to Apple, criticizing the company for manufacturing iPhones in Asia.

Trump insisted that Apple CEO Tim Cook had been previously informed of his expectations for iPhones sold in the U.S. to be made domestically.

If not, he said, Apple should face a 25% tariff.

This marks a notable shift in Trump’s rhetoric, rather than suggesting foreign countries would pay the tariffs, he now implies U.S. companies like Apple will bear the cost.

Traditionally, tariffs are paid by importers, with costs often passed to consumers.

Apple, already adapting to previous tariffs on China, has shifted production to countries like India and Vietnam.

Cook confirmed earlier this month that most iPhones sold in the current fiscal quarter would be manufactured in India, with iPads coming from Vietnam.

Analysts warned that moving iPhone production to the U.S. could raise the retail price dramatically, from $1,200 to between $1,500 and $3,500 per device.

Financial markets reacted swiftly to Trump’s threats, with the S&P 500 dropping around 1%.

Markets have grown highly sensitive to his tariff announcements.

They often fall after such declarations and rebounding when threats are walked back.

To clarify the administration’s position, U.S. Treasury Secretary Scott Bessent appeared on Fox News.

He described internal challenges in the EU’s negotiation process.

He explained that the bloc’s 27 member nations were being represented by a centralized body in Brussels.

This supposedly creating disconnects in communication and coordination.

Bessent also noted that while he wasn’t in a recent White House meeting with Tim Cook, he had discussed with the Apple CEO plans to increase domestic production, particularly of computer chips.

Trump has long criticized the U.S. trade deficit with the EU, calling it “totally unacceptable.”

While the U.S. does import more goods from Europe than it exports, the EU points out that when services, such as finance and technology, are included, trade between the two is more balanced.

The current deficit in goods alone stands at about 48 billion euros ($54 billion).

In Europe, officials pushed back.

German Foreign Minister Johann Wadephul expressed full support for the EU Commission’s efforts to maintain access to U.S. markets.

He warned that tariffs would damage both economies and urged continued negotiations.

Meanwhile, German economist Marcel Fratscher criticized the EU’s approach to Trump.

Fratscher argued that concessions and a lack of unity had weakened their negotiating position.

Trump’s unpredictable relationship with Apple further complicates matters.

While he previously praised Apple for pledging $500 billion in domestic investment, especially in AI, he turned on the company recently during remarks in Qatar.

“I had a little problem with Tim Cook yesterday,” Trump said.

“I said to him, ‘My friend, I treated you very good.

“You’re coming here with $500 billion, but now I hear you’re building all over India.

“I don’t want you building in India,’” he added.

Experts doubt Apple can shift iPhone production to the U.S. in the short term.

Dan Ives, a technology analyst at Wedbush Securities, noted that Apple’s complex, decades-old supply chains in China would make such a move both costly and logistically challenging.

Trump has also threatened separate 25% tariffs on computer chips and may revise the tariff schedule in ways that could further target Apple products.

Meanwhile, companies like Walmart and Amazon also face uncertainty.

This is as Trump has pressured them to absorb tariff costs rather than passing them onto consumers, a strategy that could hurt profits and lead to job cuts.

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