Markets fell this morning following President Donald Trump‘s new threat to impose tariffs, this time a 50% duty on goods from the European Union and 25% on Apple.
Trump’s latest comments are an indication that, although he rolled back a round of tariffs imposed following his “Liberation Day” speech in April, he continues to see the duties as a primary feature of his economic policy.
Trump wrote on Truth Social this morning, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank you for your attention to this matter!”
Per Reuters, Apple has been stepping up some parts of iPhone production in India, as China faces much higher tariffs from the U.S.
Later, Trump wrote, “The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with. Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere! 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. Thank you for your attention to this matter!”
Trump’s initial tariff announcement in April was followed by a crashing stock market, after which he put them on pause until his administration could negotiate agreements. A 145% tariff remained in place with China, a figure so high it essentially brought trade to a standstill, as Beijing imposed its own sky high duties. But after Treasury Secretary Scott Bessent met with Chinese officials earlier this month, an agreement was reached to pause the trade war for three months.
Justin Wolfers, professor at the University of Michigan, wrote on X, “The single most reliable economic fact of the Trump presidency is that when he raises tariffs, markets tank. When he backs off, they rise. This matters because markets are assessing the future profitability of American business and any tariffs benefits are downstream of boosting profitability.”
Trump this month also announced plans to impose a 100% tariff on films produced overseas. But the next day, the White House announced that a decision has not been made on those tariffs, and Trump said that he planned to meet with representatives from the industry. That meeting has not yet been held.
The post Donald Trump Threatens New Tariffs On Apple And The European Union appeared first on Deadline.
