U.S. President Donald Trump escalated his trade war by threatening a 50% tariff on European Union goods starting June 1, 2025, citing stalled negotiations and accusing the EU of taking unfair advantage of the U.S. Trump also warned of a 25% tariff on Apple iPhones if the company continues manufacturing them outside the U.S, criticizing Apple’s plans to move production to India and Vietnam.
Trump’s move marks a shift from focusing primarily on China to pressing the EU, which exports large amounts of cars, pharmaceuticals, and machinery to the U.S. Treasury officials said the EU negotiations were not meeting U.S. expectations, and the White House hopes the tariff threat will pressure Europe to make concessions.
Meanwhile, Apple has indicated plans to shift iPhone production to India and Vietnam by 2026 to mitigate tariffs in China. However, Trump insists that phone manufacturing return to the U.S., a move analysts say would significantly raise costs.
The announcements rattled global markets, causing sharp declines in U.S. stock futures, with the S&P 500 and Nasdaq falling over 1%, while major European stocks, especially German automakers and luxury brands, also declined. Apple shares fell nearly 4%.
