By Enyichukwu Enemanna
US President Donald Trump has said he will impose “at least” a 25% import tax on iPhones not manufactured in America, in addition to a recommendation of a 50% tariff on all goods from the European Union being imported to the United States.
“Our discussions with them are going nowhere!” he wrote in a post on social media on Friday. He said the new tariffs would take effect on 1 June.
The announcement is seen as an escalation of Trump’s trade war with the EU. He initially proposed a 20% tariff on most EU goods, but halved it to 10% until 8 July to allow time for talks.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump said.
“If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.”
Analysts said it remained to be seen whether the threats would turn into reality.
Since his inauguration for a second term in office, Trump has imposed and threatened various tariffs on goods from countries around the world, which he sees as a way of boosting US manufacturing and protecting jobs from foreign competition.
The prospect of higher tariffs being introduced on imports to the US has rattled many world leaders because it will make it more expensive and difficult for businesses to sell goods in the world’s largest economy.
The EU has not commented on the latest threat, which came just ahead of trade talks scheduled between the two sides.
Trade expert Aslak Berg from the Centre for European Reform said he thought Trump’s post was intended to increase leverage.
“We have to keep in mind that at this point, this is a threat. It’s not an announcement. There is no executive order,” he said.
“But the fact of the matter is the EU is not going to budge. They are going to stay calm, carry on and it will be a very difficult discussion this afternoon.”
Shares in the US and EU fell on Friday after the threats, with the S&P 500 down about 1% and Germany’s DAX falling more than 1.7%.
Trump has said he wants to reduce his country’s longstanding trade deficit with the EU, which occurs when a country imports more than it exports. He blames the deficit on policies that he says are unfair to American companies.
On Friday, Trump said the EU had been “very difficult to deal with” and that the bloc had been formed “for the primary purpose of taking advantage” of the United States on trade.
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% tariff on the European Union, starting on 1 June 2025,” he added.
