Trump Threatens 25% Tariff on Apple and 50% on EU Imports
On May 23, 2025, former President Donald Trump announced potential tariffs targeting both Apple Inc. and the European Union. He proposed a 25% tariff on iPhones manufactured outside the United States and a 50% tariff on all EU imports, citing concerns over trade imbalances and domestic manufacturing.
Impact on Apple and Global Markets
Trump's announcement led to immediate market reactions. Apple's stock dropped by approximately 3.7% in premarket trading. The broader market also felt the effects, with the S&P 500 falling 1.2% and European indices like Germany's DAX and France's CAC declining nearly 2%.
Apple has been shifting its manufacturing operations to countries like India, aiming to diversify its supply chain. However, Trump's emphasis on domestic production challenges these strategic moves.
EU's Response and Ongoing Trade Talks
The European Commission has yet to issue a formal response to the proposed tariffs. However, trade discussions between EU officials and U.S. counterparts are scheduled, aiming to address and potentially de-escalate the situation.
For more context on previous trade tensions, refer to our article on the White House's stance on Amazon's international strategies.
Expert Opinions and Economic Implications
Economists warn that such tariffs could lead to increased consumer prices and strained international relations. The move might also disrupt global supply chains, affecting not only tech companies but various industries reliant on international trade.
For a detailed analysis, visit the original report by Reuters: Trump re-escalates trade threats, takes aim at European Union, Apple.
Source: Reuters