Trump Threatens 50% Tariff on EU Imports, 25% on Apple: Markets React Sharply
Author
NEPSE TRADING
May 23, 2025 — Washington, D.C.
U.S. President Donald Trump has reignited trade war fears by proposing steep tariffs on both the European Union and Apple Inc. In a bold statement, Trump announced a recommended 50% tariff on all imports from the EU, effective from June 1, citing ongoing trade imbalances and what he describes as “unfair trade practices” by European nations.
In a simultaneous move, Trump warned Apple Inc. that iPhones manufactured outside the United States—particularly those made in China or India—could face a 25% import tariff. He urged the tech giant to relocate its production back to the U.S., aligning with his "America First" agenda aimed at boosting domestic manufacturing and reducing dependency on foreign goods.
The financial markets quickly reacted to the announcement. Apple shares dropped over 3% in premarket trading. Major U.S. indices also took a hit, with the Dow Jones Industrial Average falling by around 1.4% and the Nasdaq Composite slipping nearly 1.85%. European markets weren’t spared either, as shares of German automakers and luxury brands tumbled between 2% and 4.5%.
Trump's tariff threats follow his long-standing criticisms of global trade dynamics, particularly with the EU and China. He has repeatedly claimed that the U.S. gets the short end of the deal in international trade agreements. The latest move is also seen as a potential strategy to galvanize support among his voter base ahead of the upcoming elections.
Economists and analysts have raised red flags over the feasibility of shifting iPhone production back to the U.S., warning it could triple the manufacturing cost of the devices and dramatically raise consumer prices.
The European Union has not yet issued a formal response, but trade officials are expected to meet in the coming days to assess the situation. This escalation adds a new layer of uncertainty to global trade, with ripple effects potentially affecting businesses and consumers on both sides of the Atlantic.
