On Friday, the President of the United States, Donald Trump, reignited his longstanding trade dispute with the European Union. Asserting that conversations with Brussels had reached a dead end, Trump declared his intention to impose a significant 50% tariff on the EU, a move that shocked observers.
The President also voiced a separate criticism against manufacturers of smartphones, which includes prominent U.S. technology titan, Apple. Specifically, he threatened to burden them with additional tariffs of 25% if they chose not to relocate their manufacturing facilities to the U.S.
In response to these comments, global stock markets experienced a downturn, risking a resurgence of international economic uncertainty following a period of relative calm. This calm was due to trade agreements Trump recently finalized with China and Britain.
The first time that Trump revealed the potential EU tariffs was in a post shared early in the day. The tone of his statement was unequivocal, noting that the discussions with the EU were unproductive, therefore justifying the imposing tariff of 50%, to take effect from June 1, 2025.
Later in the day, Trump reinforced his stance to reporters in the Oval Office, expressing there was nothing the 27-member EU could do to divert his decision. He remarked, ‘I’m not looking for a deal. I mean, we’ve set the deal. It’s at 50 per cent. The EU has not treated our country fairly. They united against us for their advantage.’
Trump, a 78-year-old billionaire property mogul, refuted ideas that his proposed tariffs would damage American businesses. He countered these concerns, saying, ‘They’re not hurting, they’re helping.’
If indeed enforced, Trump’s proposed tariffs would significantly increase Washington’s base tariff level of 10%, fueling the already strained relations between the world’s leading economy and its major trading bloc.
Europe’s leadership reacted with displeasure at the U.S. president’s surprise declaration. Irish Prime Minister Micheal Martin described Trump’s announcement as ‘extremely disheartening’ and emphasized that ‘tariffs are harmful to all involved.’ France’s trade minister, Laurent Saint-Martin, stated that while France sought de-escalation, it was prepared to respond accordingly.
The EU did not immediately comment but planned a call later during the day involving EU Trade Commissioner Maros Sefcovic and the US trade representative to discuss this situation.
In a separate message uploaded on Friday that shook the market, Trump chided Apple’s chief, Tim Cook, for not relocating iPhone production to the U.S. despite repeated requests. Trump said that he had long expected all iPhones sold in the U.S.A. to be manufactured locally and not in other countries like India.
Trump alarmed smartphone manufacturers further when he suggested that he would apply tariffs to all devices not produced in the U.S. He asserted, ‘It is only fair also to include major smartphone manufacturers like Samsung and others,’ and adding that the new tariffs would take effect by ‘the end of June.’
Trump’s imposition of wide-ranging tariffs on most of the world on what he referred to as ‘Liberation Day,’ April 2, caused a significant disruption in the market. Despite this, the market regained equilibrium after Trump declared a pause to the heightened tariffs for a 90-day period.
Trump has since touted initial successes in the deals sealed with Britain and China, the globe’s second-largest economy. However, discussions with the EU have proven fruitless, with Brussels recently warning of implementing tariffs on U.S. goods worth approximately €100 billion ($190b) if the duties on European goods are not reduced.
US Treasury Secretary, Scott Bessent, informed Bloomberg Television on Friday that the lower tariff rate of 10% depended on ‘countries or trading blocs negotiating in good faith’. Traders were disturbed by Trump’s renewed assault against Europe.
Following Trump’s latest pronouncements, Wall Street’s main indexes fell down around 1% within two hours of trading. The tech-centered Nasdaq briefly dipped by 1.5% before rallying, while Apple shares declined by 2.5%. In Europe, Paris and Frankfurt reported losses of around 1.5%, and London’s FTSE 100, which initially increased, eventually closed in the red.
The post Trump Reignites Trade War with EU, Proposes 50% Tariffs appeared first on Real News Now.
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