US President Donald Trump has once again threatened to impose tough trade tariffs. This time, smartphone giant Apple and the entire European Union are the targets. Trump wants to impose a 25 percent tariff on Apple for iPhones sold in the US but not produced locally. He also threatens a 50 percent tariff on all European imports from June 1.
The escalation in Trump’s trade rhetoric comes after several weeks of relative calm on the trade front. The president announced his new plans via his social media platform Truth Social, which immediately affected the financial markets. Investors reacted with shock, causing S&P 500 futures to lose 1.5 percent in pre-market trading, while the Eurostoxx 600 fell 2 percent.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote on Truth Social. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
The president did not give a timeline for when these tariffs could take effect. Apple itself has not immediately responded to the statements. The company sells more than 60 million smartphones annually in the United States, but there is currently no smartphone production in the country.
Production to India
Apple has been working to move part of its production to reduce its dependence on China. According to Reuters sources, the company wants to produce most of its iPhones for the US in India by the end of 2026. The threat of higher tariffs on products from China would accelerate this plan.
The tech company recently announced that in the current quarter, the majority of iPhones sold in the US will come from India. This suggests that Apple is already preparing for possible trade barriers.
European Union also in the crosshairs
In addition to Apple, Trump is also targeting the European Union. He is threatening to impose a 50 percent tariff on all European imports from June 1. This would have a major impact on luxury products, pharmaceuticals, and other goods from European manufacturers.
In April, Trump announced significant tariffs on Chinese products, which led to a wave of selling on US markets. Although the White House later backed down and granted exemptions for smartphones, among other things, Trump now seems to be taking a harder line again.