President Trump on Friday took aim at Apple and the European Union in a significant escalation of his ongoing trade war. In a one-two posting spree on Truth Social early Friday, he threatened Apple with 25% tariffs on non-US-made iPhones, then attacked the European Union and said he was recommending a “straight 50%” tariff on EU-imported products beginning next weekend.
“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,” Trump wrote on Truth Social. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Apple stock lost ground Friday in conjunction with a broader market decline.
It is unclear whether Trump can target individual companies with tariffs. Trump, asked about his power to do so on Friday, suggested he wouldn’t target just Apple. Samsung (005930.KS) and other phone makers would face similar tariffs by the end of June, he said.
Trump in recent days has not been shy about verbally attacking US corporations that have been warning about the effects of his tariffs, including spats with Walmart (WMT) and Amazon (AMZN).
Meanwhile, negotiations with the EU have hit a snag, with the president charging the bloc has been “very difficult to deal with.”
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” he said.
The US has been pressuring the EU to cut tariffs on American goods, the Financial Times reported Friday. The EU is readying some $108B in retaliatory tariffs if talks fail, but leaders on Friday projected “calm” in their first response.
For his part, Trump on Friday suggested the EU could not broker a deal between now and his June 1 deadline.
“I’m not looking for a deal. I mean, we’ve set the deal. It’s at 50%,” he told reporters in the Oval Office.
Elsewhere, the US and China have signaled their commitment to continuing talks, with senior officials engaging in a call late on Thursday after the two sides stoked concerns by clashing over chips in recent days.
Treasury Secretary Scott Bessent sought to soothe market worries earlier Friday, pledging that the US would announce “several” large trade deals in the coming weeks.
Here are the latest updates as the policy reverberates around the world.
LIVE970 updates
Trump on potential tariffs on Apple iPhone made abroad: ‘It would be also Samsung’
President Trump reiterated his demand that Apple (AAPL) — and potentially other smartphone manufacturers — produce devices in the United States if they intend to sell them domestically. Otherwise, they could face tariffs.
“If they’re going to sell it in America, I want it to be built in the United States,” Trump told reporters on Friday afternoon.
His comments followed a social media post earlier that day in which he stated Apple must pay a 25% tariff on iPhones that are sold in the U.S. but not manufactured domestically.
Speaking during a Q&A session after signing nuclear-related executive orders, Trump suggested the tariff policy would apply not only to Apple but also to competitors like Samsung.
“It would be also Samsung and anybody that makes that product,” he said. “Otherwise, it wouldn’t be fair. Again, when they build their plant here, there’s no tariffs. So they’re going to be building plants here.”
Trump doubled down on the idea that companies should eat the costs of tariffs and not pass them down to customers.
“They have to take out some of their profits,” Trump said. “They’ll make a little less money. But I don’t want the consumer to pay.”
Apple’s Tim Cook thought he had a Plan B for Trump’s tariffs. It wasn’t enough.
Apple CEO Tim Cook has spent years trying to get the iPhone maker to evade President Trump’s tariffs. But today’s warning from Trump suggests the limits to those efforts.
Yahoo Finance’s Allie Canal notes that Trump’s tariff threats on the company come at a vulnerable time for its business model.
In its latest earnings call, Apple warned of a $900 million tariff-related headwind this quarter. And Wall Street analysts have questioned whether it’s even feasible for Apple to shift manufacturing to the US and escape tariffs.
Our Senior Columnist Rick Newman notes that while Trump’s fixation with Apple isn’t new, his approach to tariffs has some important differences this time around.
Read more here.
Bessent seeks to soothe markets, says ‘several large deals’ coming
Treasury Secretary Scott Bessent sought to calm markets on Friday after President Trump jolted investors from a two-week tariff slumber with broadsides at Apple (AAPL) and the European Union.
Appearing on Bloomberg TV, Bessent pledged the US would have “several large deals announced” over the next few weeks. He also said the US would have in-person talks with China again after the countries slashed tariff rates on the other last week.
European officials took in stride President Trump’s threat to levy 50% blanket tariffs on the block, with leaders urging “calm” in the face of the broadside.
From Bloomberg, some reactions:
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Economists say Canada recession has already begun as trade war rages on
Bloomberg reports:
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Trump’s tariffs hit European luxury industry, shares tank
Reuters reports:
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Volvo Cars CEO says customers must pay for rising tariffs
Volvo Cars (VOLCAR-B.ST) warned that it’s customers may have to pay a large part of the company’s tariff related cost increases, the group’s CEO Hakan Samuelsson told Reuters on Friday. Shares in the company fell over 4%.
Reuters reports:
Trump floats broad 50% tariff on EU imports starting June 1
President Trump proposed on Friday raising tariffs on goods from the European Union to 50%, starting June 1.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump posted on Truth Social. “Our discussions with them are going nowhere! 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 previously imposed a 20% so-called reciprocal tariff on the EU on April 2 but then rolled it back to 10% temporarily while trade talks ensued.
The EU sent US officials a trade proposal on Thursday, which called for gradual tariffs for some non-sensitive items as well as some mutual investments and strategic procurement. At the same time, the bloc has put together a package of retaliatory tariffs affecting roughly $108 billion in goods.
But the talks fell short of US expectations, the FT reported Friday. Officials will meet next month to determine if the two parties can avoid another escalation.
Trump’s shot at the EU came shortly after he threatened to raise tariffs on Apple (AAPL) if the company does not manufacture iPhones in the US.
US-China trade war is pushing Asian nations to pick sides, ministers warn
The trade war appears to be putting south-east Asian countries in a difficult position, with some nations facing pressure to pick sides between the US and China, government ministers warned on Friday.
The FT reports:
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Trump warns Apple of 25% tariffs if iPhones not made in US
Reuters reports:
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Trump calls Japan’s Ishiba ahead of latest tariff talks
Bloomberg News reports:
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US tariff countdown has nations racing to turn talks into deals
The countdown is on for nations to make trade deals with the US in order to avoid steep tariffs. Here is a rundown of the tariffs facing some US trading partners:
Bloomberg News reports:
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Tariff crossfire hits Toyota, Nissan, Ford suppliers in Japan
US tariffs have put Ford (F), Nissan (NNCHY) and Toyota (TM) suppliers in Japan under pressure, with many concerned about their ability to withstand rising costs.
Reuters reports:
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Trump pushes EU to cut tariffs or face extra duties
The FT reports:
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Exclusive: India may let US, foreign firms bid for government contracts: Source
Reuters reports:
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Senior US-China officials hold call, vow to keep lines of communication open
Worries about a chill in US-China trade relations are easing after a call between senior officials on Thursday, seen as a positive sign of high-level engagement in talks for a broad tariffs deal.
The officials agreed on the need to keep lines of communication open, the two sides said in closely aligned statements on Friday.
In recent days, the two countries have begun feuding again over US curbs on AI chip exports to China. That has stoked worries that the thaw in the trade war agreed at Geneva talks was at risk.
Bloomberg reports:
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Trump speaks with Mexico’s Sheinbaum on tariffs
Mexican President Claudia Sheinbaum said she spoke with US President Trump on Thursday, and the two discussed US tariffs on steel and aluminum.
From Bloomberg:
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Economic output rebounds in May but tariffs push prices higher, disrupt supply chains
US economic output rebounded in May as businesses digested President Trump’s tariff rollback.
S&P Global’s flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 52.1 in May, up from 50.6 in April.
Increased activity in both the services and manufacturing sectors helped drive the gains. S&P’s services PMI increased to 52.3 in May, up from 50.8. Meanwhile, the manufacturing PMI also increased, rising to 52.3, above the 50.2 seen the month prior.
“Business confidence has improved in May from the worrying slump seen in April, with gloom about prospects for the year ahead lifting somewhat thanks largely to the pause on higher rate tariffs,” S&P Global Market Intelligence chief business economist Chris Williamson said in the release.
Still, the data showed clear signs that tariffs are beginning to push prices higher and cause supply chain problems.
“Supply chain delays are now more prevalent than at any time since the pandemic led to widespread shortages in 2022, and prices charged for both goods and services have spiked higher as firms and their suppliers seek to pass on tariff levies to customers,” Williamson said. “The overall rise in prices charged for goods and services in May was the steepest since August 2022, which is indicative of consumer price inflation moving sharply higher.”
Ralph Lauren cuts forecast on US tariff worries
Ralph Lauren (RL) cut its annual revenue forecast on Thursday, citing pressure from US tariff uncertainty.
Reuters reports:
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US high-end livestock breeders lose millions in China tariff fallout
China used to buy lots of special breeding pigs from the US, which made good money for farmers. But the trade fight between the two countries has hurt that business badly. Sellers say they’ve lost millions and some buyers no longer trust US suppliers.
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