US President Donald Trump has sparked new tensions with Europe by threatening steep import tariffs just hours before trade talks were set to resume. Speaking on Friday, Trump proposed a 50% tariff on all goods imported from the European Union to the United States. He also warned of a 25% tax on iPhones not produced in the US. These sharp escalations come amid ongoing trade negotiations and could further strain economic relations between the two global powers.
In a statement shared on social media, Trump said the talks with the EU were “going nowhere” and confirmed that the new tariffs could take effect from 1 June 2025. This new proposal comes after an earlier announcement of a 20% tariff on most EU goods, which he later reduced to 10% to give room for negotiations. Now, however, the US administration appears ready to raise the pressure once again.
The European Union has not yet issued an official response to the latest threats, but leaders have consistently said they will defend European industries if provoked. The EU remains one of the United States’ largest trading partners, exporting over $600 billion worth of goods to the US last year, while importing around $370 billion in return. Trump has long criticized this trade imbalance, calling it unfair and accusing the EU of protecting its own industries, especially in cars and agriculture.
Trump’s remarks immediately rattled the markets. The S&P 500 dropped nearly 1% in response. European indices fared even worse, with Germany’s Dax and France’s Cac 40 each falling by over 1.5%. Shares of Apple tumbled by more than 2% after enjoying recent gains due to earlier exemptions from tariffs. Apple, one of the world’s most valuable companies, is a frequent target of Trump’s trade criticism. He has repeatedly urged the tech giant to shift more of its production to the US. Although Apple has begun moving some iPhone manufacturing away from China, most of that production has gone to countries like India and Vietnam, not back to the US.
Meeting recently with Apple CEO Tim Cook at the White House, Trump expressed dissatisfaction with the company’s global supply chain. He argues that bringing production home would boost American jobs and industry, while critics warn it could lead to higher prices for consumers and supply chain disruptions.
Inside the Trump administration, the move is being framed as a way to push Europe toward a stronger negotiating position. Treasury Secretary Scott Bessent said the US is hoping for more serious proposals from the EU side. “We are not seeing enough movement,” he said, adding that the latest threat may help advance the discussion.
But European officials pushed back. French Foreign Minister Laurent Saint-Martin described the threats as unhelpful and warned they risk damaging the talks. He emphasized France’s preference for calm, constructive negotiations but said the country stands ready to act if needed. Dutch Prime Minister Dick Schoof also called for stability, reminding both sides of the reversals that have happened before when tensions escalated in earlier trade disputes.
Some analysts believe Trump’s announcement is meant as a negotiating tactic rather than a final policy move. One expert noted that no formal order has yet been signed and said the threat may be designed to gain leverage in the upcoming discussions. “This is about creating pressure before the real decisions are made,” he said. Still, he warned that if the tariffs are implemented, they could spark retaliation from the EU and complicate global trade further.
Trade tensions between the US and its partners have been a defining feature of Trump’s economic agenda. He has repeatedly used tariffs as a tool to challenge what he sees as unfair trade practices. Supporters argue that this approach has brought more attention to American interests, especially in manufacturing. But critics say it increases costs for consumers and risks global instability.
With the next round of trade talks now hanging in the balance, governments and markets around the world are watching closely. The outcome could shape not only US-EU economic ties but also set a precedent for future trade negotiations under Trump’s leadership.
As of now, all eyes are on 1 June 2025. If the tariffs go into effect, it could mark a significant escalation in the trade conflict. Businesses, consumers, and international leaders will be preparing for the potential fallout.