Trump Threatens 50% Tariffs on EU Goods and iPhones Amid Trade Talks

US President Donald Trump brought back trade tensions on Friday. He said he might put a 50% tax on all goods from the European Union (EU).

He also warned Apple. Trump said he would add at least a 25% tax on iPhones not made in the US. Later, he said the same would apply to any smartphone.

This happened just before the US and EU were to hold trade talks. Last month, Trump had said there would be a 20% tax on EU goods. He later cut that to 10% to allow time for talks. That lower rate ends on July 8.

The EU said it still wants a deal. But it warned that it will fight back if needed.

EU Trade Chief Maroš Šefčovič said online, “EU-US trade is strong and should be fair. We are ready to protect our interests.”

At the White House, Trump told reporters he was tired of waiting. He said the 50% tax would start on June 1.

“I’m not looking for a deal. We’ve set the deal,” he said. But he added that if a big EU company invests in the US, he might delay the tax.

“We’ll see what happens. But right now, it starts June 1,” he said.

Experts React

Trade expert Aslak Berg told the BBC the threats are to gain power in talks.

“But the EU will not give in. It will be a hard talk,” he said.

He also warned that Trump’s actions could hurt future trade deals.

“For a while, people thought Trump was calming down. That is not true,” he added.

Markets Fall

Trump has often used tariffs since returning to office. He says they help US jobs and factories by making foreign goods cost more.

But many people worry these taxes will hurt global trade. They make it harder for companies to sell to the US.

Trump has backed off some plans after markets dropped and businesses complained.

On Friday, stock prices went down. The S&P 500 dropped 0.7%. Germany’s Dax and France’s Cac 40 fell more than 1.5%.

Apple’s stock dropped 3%. Trump had earlier said iPhones would not get hit with tariffs. But that may now change. The new taxes could start at the end of June.

Trump said he’s not targeting Apple alone. All smartphones will be taxed if made outside the US.

EU Pushes Back

The EU is a major trade partner of the US. It sells over $600 billion in goods to the US each year and buys about $370 billion.

Trump says the trade gap is unfair. He blames EU rules that hurt US car and farm sales.

Last month, he announced a 20% tariff on EU goods. That move started a new round of trade talks.

Some smaller countries have given in. But the EU, like China and Canada, has pushed back.

On Friday, Trump said the EU has been “very hard to deal with.”

US Treasury Secretary Scott Bessent told Fox News he hoped the threat “would light a fire under the EU.”

European Leaders Respond

EU leaders were upset.

Ireland’s Prime Minister Micheál Martin said the EU was trying to be fair. He warned that tariffs would hurt both sides.

“We don’t need to go this way,” he said. “Talks are the best way.”

France’s Foreign Minister Laurent Saint-Martin said, “We want peace, but we are ready to respond.” He added that the pressure is not helping.

Germany’s Economy Minister Katherina Reiche said, “We need more trade, not less.”

She urged the EU to keep working on a deal with the US.

Apple Caught in the Middle

Trump keeps pushing tariffs, even as experts warn they may hurt the economy.

Dan Ives from Wedbush Securities said Trump’s idea of Apple making iPhones in the US is “not possible.”

Still, he said Apple would likely manage the situation. Trump has often criticized Apple for not making its products in the US.

Trump met Apple CEO Tim Cook at the White House this week. Earlier, Trump said he was unhappy with Apple’s move to shift production to India and Vietnam.

He told Cook: “I don’t want you building in India.”