New Delhi: The stand-off between US President Donald Trump and the European Union (EU) has escalated with the former now threatening the EU with a sweeping 50 per cent tariff, saying that trade talks with them are “going nowhere.”
Trump wrote on his Truth Social platform on Friday that he was “recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.” On the same day, Trump threatened Apple with a 25 per cent tariff if it does not start producing iPhones in the US instead of India.
Regarding EU, Trump wrote, “Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
According to a report by the NBC News, Trump’s posts immediately lowered the European stock markets with stock indexes in Germany and France witnessing a 2 per cent decline. The Stoxx 600, which tracks hundreds of stocks across Europe, declined over 2 per cent, while shares in the UK dropped over 1 per cent despite the region not being a part of the EU. Dow futures slid more than 500 points and S&P futures dropped 1.5 per cent while writing this copy.
Earlier, Trump targeted Apple’s manufacturing operations in India. Taking to Truth Social, he bluntly slammed Apple CEO Tim Cook, saying he expects all iPhones sold in the US to be built within the country. Otherwise, Apple could face a tariff of a minimum of 25 per cent. He posted, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!”
