President Donald Trump has increased tensions in US-European Union trade relations by threatening steep tariffs on European goods and Apple products. He announced plans to impose a 50% tariff on all imports from the EU starting June 1, 2025. Additionally, Trump said there would be a 25% tariff on iPhones that are not made in the United States. These announcements came just before new trade talks between US and EU officials were set to begin. Earlier, Trump had reduced a planned 20% tariff on EU goods to 10% to allow more time for negotiations until July 8. However, he later said the talks were “going nowhere” and decided to start the higher tariffs in June.
Following Trump’s announcement, stock markets in both the US and Europe dropped. The S&P 500 declined by about 1%, while Germany’s Dax and France’s Cac 40 indexes each fell by more than 1.5%. Apple’s shares also fell over 2%, reversing earlier gains that came after a temporary exemption on electronics. Trump has consistently used tariffs as a trade strategy since his return to office, arguing that these measures protect American jobs and factories from overseas competition. Many critics warn that tariffs increase prices for consumers and disrupt international trade. In the past, Trump has pulled back on some tariff plans when markets reacted negatively.
The European Union is one of the largest trade partners of the United States. Last year, EU countries exported goods worth over $600 billion to the US and imported about $370 billion in return. Trump has criticized this trade imbalance and described EU rules as unfair to American companies, especially focusing on policies affecting cars and farm products. Last month, Trump announced a 20% tariff on EU goods but later reduced it to 10%. While some EU countries have looked for compromise, officials in Brussels have taken a firm stance and said they are prepared to impose their own tariffs if necessary. Trump accused the EU of being difficult to negotiate with and said it was trying to take advantage of the US. He confirmed that the 50% tariff would begin on June 1, 2025.
US Treasury Secretary Scott Bessent said the president wants the EU to make stronger offers in trade talks. He hopes the tariff threat will encourage European negotiators to improve their proposals. French and Dutch officials have said the threats make talks more difficult but stressed they remain committed to their strategies. The EU has seen tariffs with the US rise and fall quickly in the past, suggesting possible shifts ahead.
Apple is caught in the middle of the trade conflict. Trump has pushed the company to move production back to the US and recently met with CEO Tim Cook to discuss this. Apple plans to move some iPhone production from China to countries such as India and Vietnam. Trump has expressed unhappiness with this decision and included iPhones in his tariff threat, proposing a 25% tax on foreign-made models.
Trade analysts believe Trump’s tariff threats are a negotiation tactic aimed at increasing US leverage. Since no official tariffs have been imposed yet, the warnings remain just that for now. The EU is expected to resist pressure, making future talks difficult.
With trade talks about to start, governments and businesses are closely watching what the US will do next. If the tariffs go ahead, they could raise prices for consumers and deepen tensions in global trade. The world awaits the next moves as both sides prepare for further negotiations.
