Trump Sets June Deadline for 50% EU Tariffs as Markets Plunge
President Donald Trump announced Friday on Truth Social that he will impose 50% tariffs on European Union imports starting June 1. The move marks a dramatic escalation from previous 20% levies suspended in April.
Trump claims EU trade barriers and monetary manipulation create a $250 million annual deficit for America. He stated negotiations with European officials have reached a dead end. The president argues the EU was designed to exploit American commerce.
European stock markets crashed immediately after the announcement. Germany’s DAX fell 2.6% while France’s CAC 40 dropped 2.8%. The broader STOXX 600 index declined 2% as investors fled risky assets.
Trump simultaneously threatened Apple with 25% tariffs unless the company moves iPhone production from India to America. He directly addressed CEO Tim Cook, demanding domestic manufacturing for phones sold in the United States.
Apple currently produces $22 billion worth of iPhones in India annually, representing 60% growth from last year. The company plans further expansion with partner Foxconn investing $1.5 billion in Indian facilities.
Technology experts dismiss Trump’s manufacturing demands as unrealistic. Domestic iPhone production would likely cost consumers around $3,500 per device due to supply chain complexities.
EU-US Trade Tensions Escalate Amid Proposed Tariffs
The proposed EU tariffs would affect $600 billion in annual trade between America and Europe. German automakers, French luxury goods, and Italian machinery face potential price increases.
European bond yields fell as investors sought safety. German two-year yields dropped 10 basis points to 1.73% while ten-year bonds declined 9 basis points to 2.55%.
The European Commission prepared €21 billion in retaliatory tariffs targeting American products. Officials await a scheduled conversation between EU Trade Commissioner Maroš Šefčovič and U.S. Trade Representative Katherine Tai.
Trump also criticized British energy policy, suggesting the UK abandon wind power for North Sea oil drilling. He claims this would reduce energy costs significantly.
The June 1 deadline creates urgent pressure for diplomatic solutions. Both sides face potential economic damage from escalating trade imbalances that could disrupt global commerce patterns.
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