Trump Threatens New Tariffs on European Union and Apple, Reigniting Trade Fears
US President Donald Trump threatened on Friday to ratchet up his trade war again, pushing for a 50% tariff on European Union goods starting June 1 and warning Apple he may slap a 25% levy on all imported iPhones bought by US consumers.
The twin threats, delivered via social media, roiled global markets after weeks of de-escalation had provided some reprieve in the tariff battle. Major US stock indexes and European shares fell and the dollar weakened, while the price of gold, a safe-haven for investors, rose. US Treasury yields fell on fears about tariffs’ effect on economic growth, said Reuters.
Trump’s broadside against the EU was prompted by the White House’s belief that negotiations with the bloc are not progressing fast enough. His saber-rattling also marked a return to Washington’s stop-and-start trade war that has shaken markets, businesses and consumers and raised fears of a global economic downturn.
And the president’s attack on Apple is his latest attempt to pressure a specific company to move production to the United States, following automakers, pharmaceutical companies and chipmakers. The United States, however, does not mass-produce smartphones – even as US consumers buy more than 60 million phones annually – and moving production would likely increase the cost of iPhones by hundreds of dollars.
