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50% on the EU, 25% on Smartphones—Trump Ups the Tariff Ante
Apple, Amazon, and European exporters are caught in Trump’s latest economic crossfire.
sean h
May 23, 2025
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A 50% tariff on Europe. A 25% penalty on smartphones. Is a full-blown trade war brewing?
WASHINGTON — President Donald Trump is reigniting global trade tensions with sweeping new threats: a 50% tariff on all imports from the European Union and a 25% penalty on smartphones made outside the U.S., including Apple’s iconic iPhone.
The announcement, delivered via a flurry of posts on Truth Social, marks Trump’s most aggressive move yet in his ongoing effort to reshape U.S. trade relationships. But instead of isolating China — the original target of his trade war — Trump is now taking aim at long-time allies and domestic giants like Apple.
EU in the Crosshairs
Frustrated with what he called “dead-end discussions,” Trump blasted the EU for failing to make progress in trade talks. While the EU has offered to eliminate tariffs entirely, Trump insists on maintaining a minimum 10% tax—unless goods are built in the U.S.
“Our discussions with them are going nowhere!” he wrote.
“Therefore, I am recommending a straight 50% Tariff on the European Union, starting June 1, 2025.”
Trump later told reporters in the Oval Office:
“I’m not looking for a deal. We’ve set the deal. It’s at 50%.”
European leaders were quick to push back. Germany’s Foreign Minister Johann Wadephul warned that the tariffs would hurt both economies, calling for more negotiations.
“We support the European Commission in defending the EU market, but we also want to persuade America not to go down this road,” Wadephul said.
📱 Apple Feels the Heat
Trump’s threats weren’t just directed at foreign nations. He also called out Apple, warning that all smartphones not made in America — including iPhones, Samsungs, and more — would be subject to a 25% import tax.
“I told Tim Cook long ago — if iPhones are sold in the U.S., they need to be built here,” Trump posted.
“If not, they’ll pay the tariff.”
This could be a major shakeup for Apple, which has shifted much of its production to India and Vietnam. Analysts warn the tariffs could push the cost of a $1,200 iPhone to as much as $3,500 if the company relocates manufacturing back to U.S. soil.
Despite previously praising Apple’s pledge to invest $500 billion in AI development stateside, Trump has clearly changed his tone.
“I treated Apple very good,” Trump said during a speech in Qatar. “But now I hear they’re building in India. I don’t want that.”
📉 Markets Wobble as Uncertainty Grows
The stock market responded swiftly. The S&P 500 slipped 0.5% following Trump’s posts, as investors braced for supply chain disruptions and inflationary ripple effects.
“At any moment, things can change overnight,” said Ben Wood, chief analyst at CCS Insight. “It’s extremely difficult for companies like Apple to plan their business with this level of unpredictability.”
🧮 Conflicting Logic on Tariffs
Trump’s claims also reveal a growing contradiction. While he initially argued foreign nations would pay the cost of tariffs, he now appears to expect U.S. companies to absorb the hit—despite evidence that importers (and ultimately consumers) are the ones who pay.
“Trump’s threats put Apple, Walmart, Amazon — everyone — in a tough spot,” one analyst noted. “He wants them to eat the cost, but that's not how business works.”
🔄 EU Struggles to Respond
Trump’s 50% EU tariff threat overshadows China’s 30% rate, undermining the narrative that allies are being rewarded while adversaries are isolated. The EU’s trade deficit with the U.S., when including services, is modest—around €48 billion ($54B)—but Trump is laser-focused on goods only.
German economist Marcel Fratscher criticized Europe’s response, calling it “hesitant and weak.”
“Trump sees that hesitation as a weakness — and he’s exploiting it,” he said.
🎭 Tariffs or Theater?
Some experts, like Mary Lovely of the Peterson Institute, believe this is a high-stakes bluff—part of Trump’s negotiating strategy.
“He pushes to the breaking point to show how serious he is,” she explained.
“But the risk is making the U.S. look like an unreliable trading partner.”
🧨 What’s Next?
With tariffs looming and businesses scrambling, the situation remains volatile. Trump has proven he’s willing to disrupt markets and pressure allies—even at the risk of inflation and instability.
Whether this results in a new wave of domestic manufacturing—or backfires economically and politically—remains to be seen.
But one thing is certain:
The trade war is back on. And now, your smartphone and your next imported car might be caught in the crossfire. 📱
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