Today, May 23, 2025, President Donald Trump announced new significant tariff threats. These threats have led to declines in global markets and raised concerns about the global economy.

Here are the key points:

* Threat to the European Union (EU): Trump stated that he is "suggesting" a direct 50% tariff on all EU goods imported to the U.S., effective June 1, 2025. He claimed that negotiations with the EU have seen "no progress" and that there are "trade barriers, VAT, ridiculous corporate fines, non-monetary trade barriers, currency manipulation, and unreasonable claims." He pointed out that tariffs would not be imposed if products are made in the U.S.

* Threat to Apple and iPhone manufacturing: Trump also threatened a minimum 25% tariff on Apple products unless the company moves its iPhone manufacturing to the U.S. He stated that he had long informed Apple CEO Tim Cook that he wanted iPhones sold in the U.S. to be made in the U.S., not in India or elsewhere.

* Impact on the market: Following weeks of easing tariff threats, these new announcements led to declines in S&P 500 and Dow Jones Industrial Average futures, falling oil prices, and rising Treasury yields. Apple shares also fell.

* Context of current and past tariffs:

* Currently, the effective tariff rate in the U.S. is nearly 18%, the highest level since 1934.

* In April 2025, Trump announced a 10% tariff on most countries and higher "reciprocal" tariffs (11% to 50%) on countries with large trade deficits with the U.S., although many of these tariffs have been suspended for 90 days (until July 8, 2025), with most countries excluding China.

* The 25% tariffs on imported steel and aluminum, as well as automobiles and auto parts, remain in effect.

* An agreement with China to temporarily reduce mutual tariffs by 90 days, with a baseline tariff of 10%, remaining unchanged for both parties.

* Proposals from Trump during a possible second term: In his campaign, Trump promised to impose higher tariffs, including:

* 60% on China.

* 100% on Mexico.

* 20% on all other countries.

* He also proposed imposing tariffs on U.S. companies that outsource manufacturing to punish them.

Overall, Trump's tariff threats remain a factor of global economic uncertainty, potentially leading to higher consumer prices, reduced GDP, and retaliation from trade partners.