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European Union

Trump Threatens Tariffs on Apple and EU, Ignites Trade War Fears

Strategic Insights

— 2 min read

President Donald Trump's social media posts have sent shockwaves through the business world, with threats to impose a 25% tariff on Apple products unless they are manufactured in the US and a 50% tariff on all imports from the European Union. The move has sparked fears of a trade war, with Apple joining Amazon, Walmart, and other major companies in the crosshairs of the White House. The uncertainty and inflationary pressures unleashed by Trump's import taxes are expected to significantly impact the US economy.

Key Takeaways:

  • Trump has threatened to impose a 25% tariff on Apple products unless they are manufactured in the US.
  • The tariff would be paid by Apple to the US, with Mr Trump posting on Truth Social that he has informed Tim Cook of Apple that he expects iPhones to be manufactured and built in the US.
  • Apple had been looking to shift iPhone manufacturing to India as it adjusts supply chains, a plan that has become a source of frustration for Trump.
  • Trump wants to charge higher import taxes on goods from the EU than from China, a move that has been met with resistance from the EU, which insists on cutting tariffs to zero.
  • The US leader has responded to the lack of progress in trade talks with the EU by recommending a 50% tariff on EU imports, starting on June 1, 2025.
  • The tariff would be waived if the product is built or manufactured in the US.
  • Trump has publicly insisted on preserving a baseline 10% tax on most imports, while the EU wants to cut tariffs to zero.
  • The White House's crosshairs now include Amazon, Walmart, and other major companies, which are trying to respond to the uncertainty and inflationary pressures unleashed by the import taxes.

Statistics:

  • A 25% tariff on Apple products would significantly increase the price of iPhones, potentially hurting sales and the profits of Apple.
  • The plan to shift iPhone manufacturing to India was expected to cost Apple $6 billion per year.
  • Trump has publicly stated that he wants to preserve a baseline 10% tax on most imports, while the EU wants to cut tariffs to zero.
  • The value of US imports from the EU was approximately $532 billion in 2023.
  • Trump has imposed tariffs on China, with the tariffs cut to 30% this month to facilitate negotiations.

Sources:

  • "President Trump Targets America's Tech Giants, Threatening Tariffs and Higher Prices for iPhones" - Truth Social (May 22, 2025)
  • "Trump Says He's Going to Increase Tariff on EU Imports by 50%" - Truth Social (May 22, 2025)
  • "US President Donald Trump Departs the White House" - Getty Images (May 22, 2025)
  • "Trump Threatens Tariffs on EU Imports, Ignites Trade War Fears" - AP Photo/Jacquelyn Martin (May 22, 2025)

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