President Donald Trump has said he recommends a 50% tariff on all goods from the European Union imported into the United States.
“Our discussion with them won’t go anywhere!” he wrote in a social media post Friday. He said the new tariffs will begin on June 1st.
The announcement shows the escalation of Trump’s trade war with the EU. He initially proposed a 20% tariff on most EU goods, but was halved by 10% until July 8th to allow consultation time.
The president also threatened to “at least” impose a 25% import tax on iPhones that are not manufactured in the US.
“I had been informing Tim Cook a long time ago that I expected the iPhones for sale in the United States to be manufactured and built in the United States, not in India or elsewhere,” Trump said.
“If not, Apple will have to pay at least 25% of the customs duties to the US.”
Since rejoining the White House, Trump has levied and threatened various tariffs on countries around the world. He sees it as a way to protect employment from US manufacturing and foreign competition.
Duties are domestic taxes imposed on goods when they enter a country, proportional to the value of the import, and are paid by the business that imports them.
The prospect of higher tariffs on imports into the US rattles many world leaders as it makes it more expensive and difficult for businesses to sell goods in the world’s largest economy.
On Friday, Trump said the EU was “very difficult to deal with” and that the bloc was formed “for the main purpose” for the US’s main purpose in trade.
“Our discussion with them is not going anywhere! Therefore, I am recommending a straight 50% tariff on the European Union from June 1, 2025,” he added.
Trump said there are no customs duties charged if the product is “built or manufactured in the United States.”
The president slapped tariffs on imports from the EU to the US to deal with the country’s long-standing trade deficit.
US government figures show exports to the EU were $37.02 billion last year, while the reversed product was $605.8 billion.
Trump has repeatedly complained about the export of EU cars, particularly from Germany to the US, with fewer vehicles being shipped otherwise.
The EU has not commented on the latest announcement.
The Carmaker Volvo boss said that in response to Trump’s threat, customers must pay the majority of the increased costs caused by tariffs.
Hakan Samuelson told Reuters that the 50% tariff would limit the company’s ability to sell Belgian-made EX30 electric vehicles in the Atlantic.
However, he said he believed there would be a deal right away. “European and the US interests could not halt trade between them,” he said.
Although some high tariffs have been suspended by Trump, foreign-made cars have faced a 25% collection since April.
Trump’s warning to Apple comes after the tech giant said it is shifting production of most iPhones and other devices that are destined to be sold in the US, away from China.
Apple CEO Tim Cook said earlier this month that the majority of iPhones bound for the US market will be in India in the coming months, with Vietnam becoming the main production hub for items such as the iPad and Apple Watches.
All three major European stock markets, including the UK’s FTSE 100, fell in Friday afternoon trading.
