U.S. President Donald Trump has once again sparked trade war speculations by announcing a 50% tariff on all imports from the European Union and a 25% tariff on all smartphones not manufactured in America, including Apple's iPhones, starting June 1. This bold declaration has sent shockwaves through global markets.
In a message posted on social media, Trump targeted the EU and claimed that trade talks have reached a deadlock with no fruitful outcomes. He accused the EU of unfair practices and emphasized that European restrictions on American products are in place.
Trump's Warning to Apple
Trump also warned Apple that they must produce iPhones domestically, or they will face the new tariffs. He noted that he had previously informed Apple CEO Tim Cook that manufacturing should take place in the USA.
Trump mentioned plans to set up manufacturing plants in India and remarked, "Going to India is fine, but you won't sell here without tariffs. If they plan to sell iPhones in America, I want them to be made right here."
Currently, Apple is shifting a significant portion of its iPhone assembly to India to avoid Chinese tariffs, but there are no public plans to move manufacturing to the USA. Analysts predict that manufacturing iPhones in America could increase prices by hundreds or even thousands of dollars.
Later, Trump clarified that smartphone tariffs will broadly impact Apple, Samsung, and any foreign phones, and could be implemented by the end of June.
Last year, the European Union exported $500 billion worth of goods to the U.S., with Germany, Ireland, and Italy leading the charge. The 50% tariff could severely impact products like cars, pharmaceuticals, and aircraft, potentially raising costs for American consumers.
The EU's trade chief, Maroš Šefčovič, called for peace and mutual respect, while Dutch Prime Minister Mark Rutte noted that tariff threats have historically been part of American negotiation strategy.
Global Market Turmoil
Trump's announcement has led to significant market turmoil. Declines were observed in both American and European stocks. Treasury yields fell, and amidst investor concerns, gold prices increased. Additionally, Apple's shares dropped by 3%.
