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Trump Threatens Steep Tariffs on Apple iPhones and EU Imports, Jarring Markets
President Trump threatens a 25% tariff on Apple iPhones not made in the US and a 50% tariff on European Union goods starting June 1. Markets plunge as trade tensions escalate again.
ND
by News Desk
2025-05-23
Trump Threatens Steep Tariffs on Apple iPhones and EU Imports, Jarring Markets

U.S. President Donald Trump escalated trade tensions on Friday by threatening a 25% tariff on Apple iPhones sold in the United States but not manufactured domestically. Trump demanded that iPhones sold in the US must be made in America — not India or elsewhere — or face steep tariffs. This move targets Apple, which sells over 60 million iPhones annually in the US but currently manufactures most overseas.

In addition, Trump proposed imposing a 50% tariff on all imports from the European Union starting June 1. This would hit European luxury goods, pharmaceuticals, and other products hard. The announcement triggered sharp declines in global markets: S&P 500 futures dropped 1.5%, and the Eurostoxx 600 fell 2%. Apple shares fell 3.5% in premarket trading, along with major European automakers and luxury brands.

The tariffs mark an end to weeks of easing tensions following Trump’s earlier imposition of sweeping levies on Chinese goods — some exceeding 145%. The White House had paused many tariffs until July, but Friday’s statements indicate renewed escalation.

Apple is reportedly accelerating plans to manufacture most iPhones sold in the US at facilities in India by 2026 to avoid tariffs. However, Trump and Commerce Secretary Howard Lutnick have encouraged Apple to bring manufacturing back to the US. While Apple announced a $500 billion investment in US hiring and facilities, it has not committed to US-based iPhone production.

The EU has yet to formally respond but has called for talks with the US trade representative. European automakers and luxury companies experienced sharp share price drops on the news.

The threat to single out Apple for tariffs is unprecedented and raises legal questions about targeting individual companies. Apple has not yet commented.

 
Tagged:

TradeWar

USChinaTrade

AppleTariffs

EUTrade
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