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Washington, D.C. — President Donald Trump escalated his America First trade agenda Friday morning with a sweeping threat: a 50% tariff on all European Union imports beginning June 1. The move, announced via Truth Social, comes amid stalled trade talks and what Trump called a “$250 billion theft” in the form of chronic U.S.-EU trade deficits and protectionist policies. He accused the bloc of hiding behind VAT schemes and regulatory barriers, vowing that “the free ride is over.”
Minutes before the EU salvo, wrote The New York Times, Trump delivered a direct shot at Apple, warning the tech giant it faces a 25% import tariff unless it shifts iPhone manufacturing to the United States. “Tim Cook knows my expectations,” Trump wrote, echoing demands he first made in 2019. “iPhones sold in America should be built in America—not in India or anyplace else.”
Markets recoiled. S&P 500 futures fell 1.5%, European indexes tumbled 2%, and Apple’s stock slid 3.5% in premarket trading. Bond yields surged as investors braced for the inflationary shock of steep import taxes. The 10-year U.S. Treasury yield climbed to a five-month high, reflecting fears that tariffs will drive up prices and force the Federal Reserve to tighten monetary policy further.
The announcement sets the stage for a combative meeting today between U.S. Trade Representative Jamieson Greer and EU Trade Commissioner Maros Sefcovic. Sources close to the matter say Greer will reject Brussels’ most recent offer as inadequate and reaffirm Trump’s ultimatum. The European Commission has so far declined to comment.
The proposed tariff excludes products manufactured on U.S. soil—a pointed nod to Trump’s broader reshoring push. The same principle applies to Apple. As tech journalist Yashar Ali highlighted on Twitter, Trump reiterated:
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.”
Good morning, Tim Cook! pic.twitter.com/mfhvdVauYz
— Yashar Ali 🐘 (@yashar) May 23, 2025
Apple, which moved 15% of iPhone production to India by 2024, is unlikely to reverse course. Analysts warn the cost of U.S. assembly could triple the price of future models. Dan Ives of Wedbush estimates a fully American-made iPhone 16 Pro could retail for up to $3,500—a consumer shock that would likely stall sales.
Though Trump previously toured a Flextronics plant in Texas in 2019 to tout “Made in America” Mac Pros, iPhone production has largely stayed offshore. Still, he continues to use Apple as a proxy in his broader war on outsourcing and globalism.
Economists are divided. Some warn the tariffs could destabilize fragile supply chains and push up prices for U.S. consumers, while others argue that confronting EU protectionism is long overdue. What’s clear is that the bond market is sounding the alarm: rising yields signal fears of renewed inflation and a potential Fed response.
With the clock ticking on U.S.-EU trade negotiations, Trump’s hardline posture suggests a fundamental reshaping of the transatlantic economic order—and a political gamble that the domestic manufacturing revival will outweigh short-term market pain.
