Trump threatens 50% tariff on European Union goods; live updates
President Donald Trump reignited trade tensions ahead of the Memorial Day weekend with back-to-back social media posts targeting Apple and the European Union, sending global markets into turmoil after weeks of de-escalation provided some reprieve.
In a morning message on his platform Truth Social, Trump warned Apple CEO Tim Cook of a new 25% import tax if his company's trademark iPhones are not made in the United States. A half hour later, Trump wrote that he was recommending a 50% tariff on the European Union starting June 1.
"The European Union ... has been very difficult to deal with," Trump said in a social media post on May 23, a resumption of his threats after pausing reciprocal tariffs on the EU and other nations in April. "Our discussions with them are going nowhere!" the president added.
Trump had threatened big reciprocal tariffs on the EU and a host of countries in early April but paused all of them, except for tariffs on China, shortly afterward. Since then his administration has been negotiating over trade deals. The only deal reached so far has been with the United Kingdom, while talks with China began after weeks of hostility that led to both sides lowering steep tariffs.
Progress on trade had helped calm financial markets that dropped significantly after the April 2 reciprocal tariff announcement. Stocks recovered their loses, but they are now wobbling again on Trump's latest tariff threats. Apple's shares were down sharply on May 23 in premarket trading and weighing on the tech sector more broadly.
Trump’s EU tariffs would hit $606 billion in goods.
President Trump’s proposed 50% tariffs on European Union goods would hit roughly $606 billion in imported products.
That’s the value of goods exported to the United States from the European Union in 2024, according to the Office of the United States Trade Representative.
The U.S. is the EU’s largest trading partner, purchasing 21% of its exports, according to EU data.
The top EU export to the U.S. is pharmaceuticals. Other leading EU exports to America include cars and other vehicles, aircraft, engines and motors, other machinery, petroleum oils and alcoholic beverages, according to the EU. - Zac Anderson
Trump roils markets with new tariff threats
U.S. stocks stumbled out of the gate after President Donald Trump ratcheted up tariff fears again, going after iPhone maker Apple and the European Union.
His social media post referencing Apple is the first time Trump has mentioned a specific company in levying his taxes.
Apple shares dropped around 3%. Meanwhile, the blue-chip Dow lost more than 350 points and the broad S&P 500 index was down about 65 points. The tech-heavy Nasdaq shed 265 points. All three indexes are on pace to post a weekly loss and each index is currently about 2% lower on the week. - Medora Lee
Trump threatens Apple with tariffs
In an unusual tariff threat aimed at a single company, Trump singled out Apple in a social media post and demanded they build their devices in the U.S..
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” Trump wrote.
Trump mentioned Apple CEO Tim Cook, saying he "long ago" told the corporate executive “I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.”
Apple announced in February that the company plans to spend $500 billion in the U.S. over the next four years in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington. “Plans include a new factory in Texas, doubling the U.S. Advanced Manufacturing Fund, a manufacturing academy, and accelerated investments in AI and silicon engineering,” the company said in a statement.
Apple has been heavily dependent on Chinese partner Foxconn to manufacture its products, but is looking to shift most of its iPhone production to India by 2026, according to Reuters. - Zac Anderson