Donald Trump reignited his scorched-earth trade war on Friday, unleashing a fiery social media tirade that took aim at Apple and Europe with fresh tariff threats.
In classic flip-flop fashion, the president is back on the offensive. Just weeks after hitting pause on his so-called “reciprocal” tariffs amid market turmoil, he’s doubling down with predictable results sending Dow Futures plunging by more than 500 points.
In blistering posts on Truth Social on Friday morning, Trump warned that Apple would face a 25 percent tariff unless it moves iPhone production to the U.S. He also said he is “recommending” a 50 percent tariff on the European Union starting June 1, escalating tensions with the continent that is traditionally one of America’s closest allies.
The EU “has been very difficult to deal with,” Trump wrote. “Our discussions with them are going nowhere!”
Increased tariffs on Europe would lead to huge effective taxes on luxury goods.
The president previously threatened Apple after Tim Cook failed to bend the knee and was a notable absentee from the tech mogul road trip to the Mideast last week. The California giant’s shares immediately fell 3 percent in premarket trading.
“We’ve had this de-escalation tailwind at the market’s back for like six weeks now — and the market has had one of its best six-week stretches in the last 75 years — and a re-escalation of trade war rhetoric threatens that,” Ross Mayfield, an investment strategist, told CNBC.
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