Trump Announces 50% Tariffs on EU Imports and 25% Tax on Apple iPhones Unless Made in America

President Donald Trump fired off a series of aggressive trade threats on Friday, announcing he intends to slap a 50% tariff on all imports from the European Union starting June 1, 2025. At the same time, he warned Apple that iPhones sold in the U.S. will face a 25% tariff unless they’re manufactured domestically.

The moves came through Trump’s social media posts, where he expressed frustration over stalled trade talks with the EU. Despite European offers to cut tariffs nearly to zero, Trump insists on keeping a baseline tax on imports and is fed up with the lack of progress.

Apple has been singled out because it assembles most of its iPhones outside the U.S., particularly in India and Vietnam. Trump made it clear to CEO Tim Cook that unless Apple shifts production back to America, the company will pay the 25% tariff. Analysts warn that if Apple tries to make iPhones in the U.S., prices could skyrocket—some estimates say a $1,200 phone could cost up to $3,500.

Markets reacted quickly, with U.S. stock futures dropping after Trump’s announcements. The S&P 500 futures fell about 1.3% as investors grew wary of escalating trade tensions and the potential impact on business profits.

At the heart of Trump’s argument is the U.S. trade deficit with the EU. Simply put, America buys more goods from Europe than it sells back. Though the trade gap narrows when you factor in services like finance and tech, Trump is focused on physical goods and wants to shrink that imbalance.

Experts warn that going after the EU with such high tariffs could backfire. Instead of pressuring China, the EU might grow closer to Beijing, creating a stronger alliance against U.S. trade policies. European economists say the EU’s cautious response has only made Trump more confident in pushing harder.

Trump’s stance on Apple has shifted over time. The company pledged to invest $500 billion in the U.S., but Trump recently criticized their expanding factories overseas. Now, with these new tariff threats, Apple and other big companies like Walmart and Amazon are caught between managing rising costs and keeping prices competitive for consumers.

This latest tariff threat fits into Trump’s larger goal of reviving American manufacturing jobs. But economists caution that while tariffs might protect some domestic jobs, they often come at the cost of higher prices and more strained relationships with key trade partners.

Prices Could Rise, Supply Chains Could Shift

Trump’s tariff threats arrive as Americans are already feeling the pinch from inflation and supply chain issues. Raising tariffs usually means companies pay more for materials and products, and those costs often get passed to customers.

Moving factories back to the U.S. isn’t simple or cheap. Apple and others rely on established supply chains in Asia that are hard to replicate at home. If companies have to pay more for tariffs or relocation, consumers could see pricier iPhones, electronics, and other goods.

The EU is also reacting by seeking stronger trade ties with Asia and other regions, hoping to reduce reliance on both the U.S. and China. This shift might reshape global trade routes and alliances in the next few years.

if you’re planning to buy a new phone or electronic device, don’t be surprised if prices climb. Trade tensions aren’t just about politics—they hit your wallet too.

Also Read: Ultraconservative Republicans Threaten to Block Trump’s Tax Bill Despite SALT Deduction Increase