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Trump Ignites New Trade Battle with EU and Apple, Sending Markets Reeling- President Donald Trump has dramatically escalated global trade tensions, announcing a "recommendation" for a sweeping 50% tariff on all goods imported from the European Union, effective June 1, 2025. This aggressive move, coupled with a direct threat of a 25% tariff on Apple iPhones not manufactured within the United States, has sent immediate shockwaves through financial markets and reignited fears of a damaging global trade war, Daily Dazzling Dawn understands.
In a series of posts on his "Truth Social" platform, Trump sharply criticized the EU, claiming the bloc was "formed for the primary purpose of taking advantage of the United States on TRADE." He cited what he called "powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies," leading to a "totally unacceptable" annual trade deficit of over $250 billion. "Our discussions with them are going nowhere!" Trump declared, setting the stage for the unprecedented tariff hike. The proposed 50% tariff would only be exempt if the product is "built or manufactured in the United States."
The announcement immediately impacted markets, with Apple shares falling in pre-market trading, on track to drop by around 3% when Wall Street opens. This decline follows Trump's direct warning to Apple CEO Tim Cook, stating, "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."
This latest ultimatum to Apple comes after reports that the tech giant was planning to shift iPhone assembly for the US market from China to India, a move Trump previously described as a "little problem" with Cook. Trump's consistent push for "Made in America" manufacturing is at the heart of these new tariff threats.
The European Union has yet to issue a full official response to Trump's proposed 50% tariff, but the move is expected to provoke strong condemnation and likely retaliatory measures, further exacerbating an already fragile global economic climate. Analysts are warning of significant disruptions to supply chains, increased consumer costs, and potential job losses if these tariffs are fully implemented. The aggressive trade stance signals a potential shift back to protectionist policies that could redefine international commerce.
