Trump tariff threat has once again stirred global trade waters. On Friday, President Donald Trump announced two alarming possibilities. First, a 50% tariff on all European Union goods starting June 1. Second, a 25% import tax on iPhones bought by American consumers.

Markets reacted immediately. The S&P 500 dropped 1%, while the Nasdaq slipped 1.2%. Meanwhile, European shares fell by 1.5%. This sharp response revealed investors’ fears about prolonged trade instability.

Threat Targets EU Deals

The White House blames the slow pace of EU talks. Trump’s frustration was evident in his online posts. He accused the EU of taking advantage of America on trade. Treasury Secretary Scott Bessent said the tariff move would “light a fire” under the EU. He stressed that other nations had shown better faith in negotiations.

The European Commission declined immediate comment. However, EU trade chief Maros Sefcovic planned a call with US officials. Later that day, 27 EU envoys also met in Brussels to discuss the situation.

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Dutch Prime Minister Dick Schoof remained calm. Speaking in The Hague, he called it part of the ongoing negotiations. He added that both sides had previously raised and lowered tariffs.

Trump’s erratic trade tactics are not new. He had paused most earlier tariffs after global backlash. Yet he kept a 10% tax on most imports. He also dropped a 145% tax on Chinese goods to 30%.

Trump Tariff Threat Hits Apple and Tech Sector

Apple faced direct heat. Trump warned of a 25% tax on iPhones unless the company shifted manufacturing to the US. He told Apple CEO Tim Cook to stop building phones in India or China.

But experts questioned the legality of company-specific tariffs. Sally Stewart Liang, a legal analyst, warned it could trigger long investigations. Moreover, the US lacks smartphone factories. Shifting production would spike iPhone prices.

Despite pressure, Apple plans to increase manufacturing in India. Yet moving full production to America remains unlikely in the near future. Analysts estimate it would take up to five years.

Apple shares fell 2.5% following Trump’s threat. Other companies in Europe also saw losses. German carmakers and luxury brands, especially, took a hit.

In conclusion, the Trump tariff threat could reshape trade dynamics globally. From European exports to US tech giants, the economic impact may be widespread. As talks continue, markets and consumers brace for uncertainty.

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