Trump Threatens 50% Tariffs on EU Goods, Targets iPhones in Escalating Trade Dispute

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Rebecca Cook / Reuters

U.S. President Donald Trump reignited transatlantic trade tensions on Friday, threatening to impose a sweeping 50% tariff on all goods imported from the European Union. The announcement, delivered via a social media post just hours before a new round of trade negotiations was set to begin, also included a warning of a 25% import tax "at least" on iPhones not manufactured within the United States.

The proposed measures come as part of Trump's ongoing campaign to reshape U.S. trade relationships and bolster domestic manufacturing, a key pillar of his economic policy.

“Our discussions with them are going nowhere!” Trump wrote. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”

A Return to Economic Nationalism

This latest move revives concerns over a renewed global trade war, especially given the scale and reach of EU-U.S. trade. In 2024 alone, the EU exported over $600 billion worth of goods to the U.S., while importing approximately $370 billion, according to U.S. government data. Trump has repeatedly pointed to this trade imbalance as evidence of what he calls “unfair” European policies, particularly in the automotive and agricultural sectors.

The president’s post comes on the heels of a temporary reduction in EU tariffs, which he had previously set at 20% and later halved to 10% to allow space for negotiations. The talks, however, have yielded little progress, prompting Trump's latest threats.

Market Reaction and Economic Concerns

Financial markets responded swiftly. The S&P 500 dropped 1%, while European indices, including Germany’s DAX and France’s CAC 40, closed down more than 1.5%. Apple, one of the primary targets of the proposed tech tariffs, saw its shares open more than 2% lower.

The tech giant had previously been spared from key electronics tariffs, but Trump's new threat to impose a 25% tax on iPhones made outside the U.S. now casts a shadow over its global supply chain. Apple CEO Tim Cook met with Trump earlier this week, following the company’s announcement that it is moving much of its manufacturing for U.S.-bound devices from China to countries like India and Vietnam.

Mixed Responses from the EU

European leaders and analysts have adopted a cautious tone. French Foreign Minister Laurent Saint-Martin criticized the rhetoric, warning that the threats were “not helping” the negotiations. Meanwhile, Dutch Prime Minister Dick Schoof urged a steady approach, stating that “we will stick to the path” already chosen by the EU, while leaving room for negotiation in light of potential escalation.

Speaking to Fox News, U.S. Treasury Secretary Scott Bessent defended the president’s position, noting dissatisfaction with what the U.S. sees as inadequate EU proposals. “I would hope this would light a fire under the EU,” Bessent said.

Strategic CalculationsAnalysts believe the president’s rhetoric is likely designed to pressure the EU into concessions. Aslak Berg, a trade expert with the Centre for European Reform, noted that “this is a threat, not yet a formal announcement. There is no executive order.” He added, however, that while such tactics are typical of Trump’s negotiation style, they risk hardening the EU’s stance.

“The EU is not going to budge. They are going to stay calm, carry on, and it will be a very difficult discussion this afternoon,” Berg said.

As the June 1 deadline looms, the possibility of tit-for-tat retaliation raises the stakes for both sides. European officials have previously signaled readiness to counter any U.S. tariffs with their own measures targeting American goods.

With the world’s largest economies poised for confrontation, the coming days will determine whether Trump’s hardline stance leads to a breakthrough or a broader trade war