Trump reignites global trade tensions with proposed 25% tariff on Apple iPhones and 50% duties on EU imports, shaking global markets.
U.S. President Donald Trump has once again stirred the global trade landscape with bold statements, this time targeting tech giant Apple and the European Union. His latest threats could have serious consequences for global markets and the supply chains of major technology firms.
A New Warning to Apple: 25% Tariff on Imported iPhones
In one of his most assertive recent statements, Trump warned that Apple could face a 25% tariff on iPhones sold in the U.S. if they are not manufactured domestically. With over 60 million smartphones sold annually in the U.S.—a country with virtually no domestic smartphone production—this threat could significantly affect Apple and its American consumers.
In a post on Truth Social, Trump declared:
“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.”
He added, “If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.”
Second Strike: EU Facing 50% Import Tariffs
In a parallel move, Trump proposed a sweeping 50% tariff on goods imported from the European Union, set to begin on June 1. The proposed levy would affect a broad range of European products, including luxury items, pharmaceuticals, and industrial goods.
This decision could carry wide-ranging implications for European manufacturers and exporters, leading to higher consumer prices in the U.S. and strained transatlantic trade relations.
Markets React Sharply: Wall Street and Europe in Decline
Financial markets reacted swiftly to the announcement. Futures for the S&P 500 fell 1.5%, while the Eurostoxx 600 dropped by 2%. Apple’s stock fell 3.5% in pre-market trading, with other tech giants experiencing similar losses.
Investors now fear a return to the trade wars that marked the early years of Trump’s presidency, with rising uncertainty in the global economic outlook.
Apple’s Strategic Pivot to India Accelerates
Apple has yet to issue an official response to Trump’s threat. However, reports indicate that the company is accelerating plans to shift the bulk of its U.S.-bound iPhone production to India. According to sources cited by Reuters, Apple aims to move most of its manufacturing for the U.S. market to India by the end of 2026.
This strategic shift is part of Apple’s efforts to reduce its dependency on Chinese supply chains and to safeguard its operations from future tariff risks.
Ongoing Trade Policy Volatility Alarms Businesses
Despite ongoing negotiations between Washington and several trading partners, tangible progress remains elusive. Earlier in April, Trump’s tariff hikes triggered a sharp selloff in U.S. markets, leading to a temporary pullback from some of the proposed duties.
However, his latest statements suggest that the unpredictability of U.S. trade policy under his leadership remains a persistent concern for global investors and businesses alike.
