US President Donald Trump threatened once again on Friday to intensify his trade war, recommending a 50% tariff on European Union goods starting June 1, and warning Apple that he may impose a 25% tariff on any iPhones manufactured outside the US.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump wrote on his Truth Social site. “Our discussions with them are going nowhere!”
“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 said in a post on Truth Social on Friday morning, referring to the Apple CEO.
“If that is not the case, a tariff of at least 25% must be paid by Apple to the US”
It is not clear whether a tariff on an individual company would face legal hurdles. Apple declined to comment on Trump’s threat.
The twin threats, delivered via social media, roiled global markets after weeks of de-escalation had provided some reprieve. The S&P 500 fell 1.2% in early trading, the Nasdaq fell 1.5%, and European shares fell 1.7%.
Shares in Germany’s carmakers and luxury companies — some of the most exposed to tariffs — fell on the news. Porsche, Mercedes and BMW were down between 2% and 4.5%. Sunglasses company EssilorLuxottica was 5.5% lower.
Shares of Apple fell 3.7% in pre-market trading, along with the shares of other technology bellwethers. Trump did not give a timeframe for his warning to Apple.
More than 60 million phones are annually sold in the United States, but the country has no smartphone manufacturing.
The EU Commission on Friday declined to comment the new 50% tariff threat, saying it would wait for a phone call between EU trade chief Maros Sefcovic and his US counterpart Jamieson Greer.
Envoys from the 27 EU countries are due to meet on trade in Brussels later on Friday.
