Key Points Summary โ Trump Trade War
- Trump threatens 50% tariffs on EU goods and 25% on Apple products.
- Demands iPhones be made in the U.S., not India or China.
- Stock markets dip following his social media statements.
- Apple warned tariffs could raise iPhone prices to $3,500.
- EU defends its trade practices, pushing for continued talks.
- Treasury says EU suffers from a collective negotiation issue.
- Experts claim Trumpโs tariff strategy is failing with allies.
Trump Trade War Heats Up: Tariff Threats Target EU and Apple
Washington โ President Donald Trump just raised the stakes again.
On Friday, he fired off a new round of threats. This time, itโs Europe and Apple in his crosshairs.
He warned of a sweeping 50% tariff on all European Union imports. Additionally, he threatened a 25% tariff on Apple products made outside the U.S.
Tariffs or Else: Trumpโs Demands for Apple
In a Truth Social post, Trump wrote that Apple must build iPhones in America. Otherwise, theyโll pay up.
โI told Tim Cook I expect iPhones sold in the U.S. to be made here,โ he posted. โIf not, Apple pays a 25% tariff.โ
His tone has changed. Previously, Trump claimed tariffs hurt foreign nations. Now, he suggests companies will bear the brunt themselves.
Markets React and Prices Could Skyrocket
The markets didnโt wait to respond. The S&P 500 fell 1% following the announcement.
Bankers predict if Apple builds iPhones in the U.S., prices could soar. Some estimates suggest a $1,200 iPhone could cost up to $3,500.
Apple, like other firms, faces the tough reality of Trumpโs trade war.
EU Targeted as Frustration Grows
Trumpโs frustration isnโt new. But this move marks a dramatic escalation.
โThe EU talks are going nowhere,โ he wrote. โSo, I recommend a straight 50% tariff starting June 1.โ
Europe offered to cut tariffs to zero. Trump insists on maintaining a 10% floor.
Treasury Blames EUโs Structure
Treasury Secretary Scott Bessent defended the move. He blames the EUโs bureaucratic structure.
โItโs a collective action problem,โ he said on Fox News. โThe member states donโt know what Brussels negotiates.โ
Bessent didnโt attend Trumpโs meeting with Tim Cook, but said heโs spoken with Apple.
The Numbers Behind the Rhetoric
Trump claims America has a โtotally unacceptableโ trade deficit with the EU.
However, the EU says services offset the gap in goods. Total imbalance? Around $54 billion.
Germanyโs Foreign Minister Johann Wadephul pushed back.
โThese tariffs help no one,โ he said. โThey damage growth in both regions.โ
Experts Call EU Strategy a Failure
Economist Marcel Fratscher minced no words.
โThe EUโs trade strategy with Trump is a total failure,โ he posted. โTrump sees concessions as weakness.โ
Some argue Europe mightโve been better off joining forces with China.
Appleโs Dilemma: Caught in the Middle
Trump once praised Appleโs U.S. investments. Now, heโs openly hostile.
In Qatar, he warned Tim Cook, โI treated you well, but I hear youโre building in India. I donโt like it.โ
Meanwhile, analysts doubt Apple can shift production back to America quickly.
Trump Trade War Shows No Signs of Slowing
From Walmart to Amazon, big brands face mounting pressure. Trump demands they absorb the costโnot consumers.
With Apple next in line, uncertainty grows. Supply chains are fragile, and trade deals still elusive.
Trumpโs latest threats have revived fears. And as June 1 looms, the global economy braces.
The Trump trade war isnโt over. In fact, it may have just entered a new phase.