Trump threatens trade war with 50% EU tariff and smart phone levy

Mace | 24th May 2025 | International, Washington

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Donald Trump has threatened a 50% tariff on all EU imports and a 25% levy on non-US-manufactured iPhones, triggering sharp market losses and EU warnings of retaliation. Apple shares plunged, and European indices dipped as fears of renewed trade war disruptions rattled investors and strained transatlantic economic relations.

On 23 May 2025, President Donald Trump threatened impose a 50% tariff on all European Union (EU) imports starting 1 June, citing a trade deficit exceeding $250 billion and accusing the EU of unfair trade practices. In addition, Trump threatened a 25% tariff on iPhones and other smartphones not manufactured in the United States, directly impacting companies like Apple and Samsung. Apple's stock declined by over 3% following the announcement, erasing approximately $70 billion in market value. European markets also reacted negatively, with Germany’s DAX falling 1.5%, France’s CAC 40 down 1.7%, and the pan-European Stoxx 600 nearly 1% lower. The European Union expressed readiness to defend its interests, emphasising that trade relations should be guided by mutual respect rather than threats. Trump's tariff threats have introduced significant uncertainty into global markets, affecting investor confidence and prompting discussions on potential retaliatory measures from the EU....

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