- 50% Tariff on EU Goods: President Trump has threatened a 50% tariff on all imports from the European Union, citing stalled trade negotiations and an "unacceptable" trade deficit. This would take effect on June 1, 2025, unless the EU makes concessions .

- 25% Tariff on Apple iPhones: Trump also warned of a 25% tariff on iPhones sold in the U.S. unless Apple shifts production from India and Vietnam to the United States. Apple currently plans to move some manufacturing to India but has not committed to U.S. producti

2. Background on Trump’s Trade War

- Reciprocal Tariffs: In April 2025, Trump imposed a 10% baseline tariff on most imports, with higher rates (up to 50%) for countries with large trade surpluses with the U.S. .

- China Tariffs: After escalating tensions, the U.S. and China agreed to reduce tariffs temporarily, with U.S. tariffs on Chinese goods dropping from 145% to 30% for 90 days .

- Canada & Mexico: A 25% tariff was imposed on non-USMCA-compliant goods, linked to immigration and drug trafficking concerns .

3. Economic and Market Impact

- Stock Market Volatility: Trump’s tariff threats have repeatedly caused market declines, with the S&P 500 dropping ~1% after the latest EU and Apple announcements .

- Consumer Price Hikes: Analysts estimate a $1,200 iPhone could rise to $1,500–$3,500 if made in the U.S. due to higher production costs .

- EU Retaliation: The EU has prepared $108 billion in retaliatory tariffs on U.S. goods if Trump follows through .

4. Legal and Political Reactions

- EU Leaders: Criticized the threats, with Ireland’s PM calling them "enormously disappointing" and France’s trade minister stating they "do not help negotiations" .

- Legal Challenges: Experts question whether company-specific tariffs (like Apple’s) are legally enforceable under U.S. trade laws .

5. Long-Term Strategy

Trump’s approach aims to:

- Reshore manufacturing (e.g., pressuring Apple to make iPhones in the U.S.).

- Reduce trade deficits by taxing imports more aggressively.

- Leverage tariffs as negotiation tools, though critics argue they risk global economic instability .