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Trump threatened the EU with a 50% tariff in a post on his social media platform Truth Social on Friday, May 23. He claimed the higher duties would go into effect on Sunday, June 1.
The President accused the EU of being "difficult to deal with" in trade negotiations.
"Our discussions with them are going nowhere!" Trump posted. "Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States."
Trump's latest tariff threat came right before a call between European Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer, Reuters reported.
"The fact that we see some important statements in the public domain does not mean that they will translate into actions of the US administration," said Michal Baranowski, deputy economic minister of Poland, which holds the EU's rotating presidency.
Trade talks between the EU and the US have slowed after European negotiators recently visited Washington with a term sheet offering tariff cuts and increased energy purchases to strike a deal, The New York Times reported. The EU has since prepared counter-tariffs on US goods like bourbon, clothing, machinery, and soybeans.
Dutch Prime Minister Dick Schoof said the EU would hold its position in the face of Trump's trade threats.
"We have seen that tariffs can go up and down in talks with the US," he told reporters.
In 2022, the EU was the second-largest buyer of American exports, purchasing nearly $351 billion in US goods, according to the Office of the US Trade Representative. Collectively, the EU was slightly ahead of China, supplying the US with $553.3 billion in goods.
In a separate Truth Social post, Trump said Apple could face 25% tariffs on iPhones if the tech giant doesn't make the smartphones in the US.
"I have long ago informed [CEO] 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," Trump posted. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S."
Global markets tumbled after Trump's newest threats. By noon on May 23, the Dow Jones Industrial Average fell more than 300 points, the S&P 500 dropped about 50 points, and the Nasdaq lost more than 210.
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The threats are the latest in Trump's rapidly changing trade policies. The EU is among most countries facing 10% baseline tariffs, while 25% duties remain on cars, steel, and aluminum.
China and the US agreed to temporarily lower their sky-high tariffs, with the US reducing its rate to 30% on Chinese goods. The UK and US have also tentatively agreed to a trade deal, the first since Trump's "liberation day" announcement sent markets spiraling in early April.
Trump's new threat to Apple adds fuel to inflation fears.
The company manufactures most of its devices abroad, especially in China. Apple is reportedly considering hiking prices on the newest iPhone, which is expected to be released in the fall.
Major retailers like Walmart and Target have already warned they'll raise prices on many items due to Trump's tariffs.
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