Donald Trump announced the imposition of 50% tariffs on all goods from the European Union starting June 1. He wrote about this on his platform Truth Social, accusing Brussels of an unfair approach to trade. «The European Union is mocking us. A trade deficit of more than 250 billion dollars a year is absolutely unacceptable», — he stated.
According to Trump, negotiations with the EU have reached a deadlock, which means «tough measures are needed». Previously, starting April 9, the US had already imposed 20% tariffs on European goods, and for industries like automotive and steel, tariffs are 25%. The new increase will hit all EU exports. After several weeks of de-escalation, the global market shook again, with futures on S&P 500 losing 1.5% in the pre-market, and Eurostoxx 600 falling by 2%.
Apple also came under fire. The company may face an additional 25% tariff if it does not move iPhone production from China to the USA. Trump reminded that he had warned the corporation's head Tim Cook. «If you sell in the USA, assemble devices here. Otherwise — pay the tariff», — Trump wrote.
Experts note that Trump's demands will lead to huge costs and increased product prices. More than 60 million phones are sold annually in the USA, but there is no smartphone production in the country. Apple is gradually moving part of its production to India and Vietnam, but moving everything to the USA in a short time is impossible — it will take years and billions of dollars, writes Bild.
Apple shares fell by 3.5% in pre-market trading, as did shares of other leading tech companies.
«All optimism about trade deals vanished in a matter of minutes — even seconds», — wrote Fawad Razaqzada, market analyst at City Index and FOREX.com.
Trump stirred the markets in early April by imposing tariffs. Specifically, he imposed a 145% tax on imported goods from China. In response, investors began fiercely selling American assets, as these tariffs made them question the «safe haven» status that America had long enjoyed. The shock reaction forced the White House to suspend most tariffs until early July, leaving only a 10% tax on imports from other countries, but Trump did not rule out the possibility of reinstating some tariffs. Friday's statements put an end to this calm.
The EU Commission on Friday refused to comment on the US President's statements, saying it would wait for a phone call between the head of the EU trade department Maroš Šefčovič and his American counterpart Jamieson Greer.