Trump threatens 50% tariff on EU, 25% levy on Apple for iPhones not made in U.S.

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U.S. President Donald Trump threatened to impose tariffs of 50 per cent on the European Union and 25 per cent on all smartphones entering his country starting next month, abruptly ratcheting up his global trade war Friday after weeks of de-escalation.

The President also reiterated his call for the U.S. to stop importing cars from Canada, piling on further uncertainty for an industry that is already scaling back.

Following through on such policies would inflate prices for U.S. consumers, risk supply shortages and further roil international markets. Even if the threats are merely a negotiating tactic, they threaten to freeze investment as it remains unclear where the White House’s erratic trade policy will end up.

Writing on Truth Social on Friday morning, Mr. Trump said he would tariff all European Union exports to the U.S. at 50 per cent starting June 1 because talks with the trading bloc are jammed.

“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” he wrote.

In another post, he said he had told Apple chief executive Tim Cook that all iPhones sold in the U.S. “will be manufactured and built in the United States, not India, or any place else,” or “a Tariff of at least 25% must be paid by Apple.”

Later at the White House, he said this tariff would apply to all smartphones, not only iPhones – specifically naming those made by Samsung. He said he would impose it “by the end of June.”

Mr. Trump indicated he decided on the policy after Mr. Cook told him of plans to expand manufacturing in India.

“I said ‘that’s okay to go to India, but you’re not going to sell into here without tariffs,’” Mr. Trump said. “If they’re going to sell it in America, I want it to be built in the United States.”

Apple did not respond to a request for comment.

On the European Union, the President said it was unfair his country was importing so many European cars while selling so few in the EU. He also reiterated his desire to see the North American auto industry close plants in Canada and manufacture all cars for the U.S. market domestically.

“I like Canada very much but we don’t want to have Canada making our cars. We want to make our own cars,” Mr. Trump said, before being twice interrupted by his iPhone ringing with calls he said were from members of Congress.

Very few smartphones are built in the U.S., with Apple AAPL-Q manufacturing its products in China, India and Vietnam using components from Taiwan and South Korea. Moving production to the U.S. would both be logistically complicated and drive up costs because American workers are paid significantly more.

Daniel Ives, a technology analyst with Wedbush Securities, estimated that if iPhone production were moved to the U.S., the devices would retail for US$3,500, several times the current price. “This would result in an iPhone price point that is a non-starter,” he wrote on X.

Friday’s threats were a continuation of Mr. Trump’s chaotic approach to one of his signature policies. He has repeatedly announced tariffs only to roll them back amid stock market turmoil.

The President has, however, kept some levies in place, including 25 per cent on all imports of steel, aluminum and automobiles, which disproportionately hit Canada, and a 10-per-cent “baseline” tariff on most countries.

The Trump administration has also promised future tariffs specifically targeting technology products and pharmaceuticals. And it has held out the possibility of raising country-specific tariffs if it cannot swiftly make more trade deals.

Treasury Secretary Scott Bessent said Friday on Fox Business that the EU threat was meant to “light a fire” under the bloc‘s negotiators because they have so far not come up with satisfactory trade proposals for the U.S.

The Financial Times, citing unnamed U.S. officials, said the main sticking point is that the U.S. wants the EU to unilaterally lower tariffs while the EU only wants to lower tariffs if the U.S. does, too.

Goods trade between the U.S. and the EU amounted to US$976-billion last year, according to U.S. figures. Top American imports included cars, pharmaceuticals and chemicals.

Simon Lester, a Washington-based trade analyst, said both threats appear designed to wring concessions out of Mr. Trump’s negotiating partners. “We’re always trying to figure out: do we take this seriously or not?” he said.

Apple, for instance, has already promised US$500-billion worth of new investments in the U.S. The President may just be searching for more of that, such as a new chips plant, said Mr. Lester.

“There’s not much basis to think these tariffs would happen but, hey, we’ve seen some strange things, so you can’t rule it out,” he said.

With a report from Reuters