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Friday, 23 May 2025

Trump Escalates Trade Tensions with Threats of 50% EU Tariffs and 25% Smartphone Tax


US President Donald Trump escalated trade tensions on Friday by threatening to impose a 50% tariff on all imports from the European Union, just hours before the two sides were scheduled to begin trade talks.

In a separate warning, Trump targeted Apple and other smartphone makers, stating he would introduce a 25% import tax “at least” on iPhones not assembled in the United States—later expanding that threat to include all smartphones.

The latest salvo follows Trump's earlier decision to implement a 20% tariff on most EU goods last month, a move he later reduced to 10% until 8 July to allow space for negotiations. But on Friday, he suggested that talks were failing.

“Our discussions with them are going nowhere!” Trump wrote in a social media post, recommending that the steeper tariffs take effect on 1 June.

Speaking to reporters later at the White House, Trump signalled he had made up his mind.

"I'm not looking for a deal - we've set the deal," he said, though he added that a major investment from a European firm in the US might prompt him to delay the move.

Neither Apple nor EU officials issued immediate responses. However, European leaders expressed frustration, while indicating they would not be altering their approach.

“We are maintaining the same line: de-escalation, but we are ready to respond,” French Foreign Minister Laurent Saint-Martin wrote on social media, calling the threats unhelpful to the negotiation process.

Trade analysts cautioned that Trump’s statements may be more strategic than substantive for now.

“We have to keep in mind that at this point, this is a threat. It’s not an announcement. There is no executive order,” said Aslak Berg of the Centre for European Reform, speaking to the BBC.

Berg said the comments were likely aimed at gaining leverage ahead of the negotiations but expected a firm EU stance.

“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,” he said.

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