U.S. President Donald Trump has once again turned up the heat on global trade, threatening to slap a 50% tariff on all goods from the European Union, reigniting tensions just hours ahead of high-stakes trade talks with Brussels.
In a fiery social media post on Friday, Trump said negotiations with the EU were “going nowhere” and declared that the new tariffs would take effect on June 1, unless European leaders made meaningful concessions.
“I’m not looking for a deal – we’ve set the deal,” Trump later told reporters at the White House.
He added that only “a big investment in the US” by a European company might sway him to delay the move.
Apple and iPhones in the Crosshairs
Trump also took direct aim at Apple, threatening a 25% import tax on all iPhones not assembled in the United States. The tech giant’s shares dropped nearly 3% after the announcement.
Although Apple recently began shifting some production from China to India and Vietnam, Trump has long pressed CEO Tim Cook to “build iPhones in America.”
Analysts, however, say such a move is “a fairy tale” given current supply chains and cost implications.
“Trump’s strategy seems more about optics and leverage than economic practicality,” said Dan Ives, an analyst with Wedbush Securities.
EU Responds with Caution, Not Capitulation
European leaders expressed dismay but resilience, signaling no intention to bow to U.S. pressure.
“We are maintaining the same line: de-escalation, but we are ready to respond,” said France’s Foreign Minister Laurent Saint-Martin.
Ireland’s Taoiseach Micheál Martin added: “We do not need to go down this road.”
Germany’s Economy Minister Katherina Reiche stressed that “we need more trade, not less”, while Dutch PM Dick Schoof noted that the EU would “stick to the path” of principled negotiation.
The European Commission has yet to formally respond but is reportedly preparing countermeasures if the tariffs are enacted.
The news sent shockwaves through global markets. Wall Street’s S&P 500 slid 1%, while Germany’s DAX and France’s CAC 40 both dropped more than 1.5%. Investors fear Trump’s hardline rhetoric may plunge global trade into renewed uncertainty.
“This is not just tough talk—markets are reacting like it’s a real risk,” said Aslak Berg of the Centre for European Reform.
Trump has repeatedly criticized the EU over the $230 billion trade deficit, blaming it on “unfair” policies and citing issues with automobile imports and agricultural restrictions.
His Liberation Day announcement last month launched a 20% tariff campaign on EU goods—temporarily halved to 10% to allow room for talks. With that window now closing, Trump appears to be doubling down.
“I believe the president thinks the EU’s proposals have not matched those of our other partners,” said Treasury Secretary Scott Bessent, who hinted the move might “light a fire under the EU.”
