Trump has declared a 50% tariff on all imports from the European Union, effective June 1. He cites the EU’s trade practices and regulatory barriers as reasons for this action, emphasizing a trade deficit of over $250 million annually and alleging unfair treatment in sectors like agriculture and automobiles. #TrumpTariffs

The United Kingdom, having finalized a trade deal with the U.S. post-Brexit, will be exempt from these new tariffs. 

In addition to the EU tariffs, Trump has threatened a 25% tariff on all smartphones manufactured outside the U.S., including those from Apple and Samsung. He insists that companies like Apple move their production to the U.S. to avoid these tariffs.  

These announcements have led to significant market volatility: 

The Dow Jones Industrial Average fell 242 points.

The S&P 500 dropped 38 points.

European stocks, including Italy’s FTSE, experienced declines. #MarketPullback

Investors are concerned about the potential for a full-blown trade war and its implications for global economic stability.

European Union officials have expressed disappointment over the unilateral tariff increases and emphasized the importance of mutual respect in trade relations. They are preparing counter-measures, including tariffs up to €21 billion on various U.S. goods, escalating the risk of a full-blown trade war.