US President Donald Trump threatened on Friday to go up his business war on Friday once again, put pressure on a 50% rate on European Union from June 1 and warn Apple that he could gify a 25% levy from all iPhones bought by American consumers. The twin threats, delivered via social networks, have gone a tour of the world markets after weeks of de -escalation provided a little stay. The S&P 500 fell by 1% at the start of negotiations, the NASDAQ dropped by 1.2% and European shares dropped by 1.5%. Trump’s wide side against the EU was caused by the conviction of the White House that negotiations with the block do not progress quickly enough. But its saber-tail also marked a return to the Washington Start and start-up trade war which rocked markets, businesses and consumers and has raised a global economic slowdown. The president’s attack on Apple, on the other hand, is his last attempt to pressure a specific company to move production in the United States, following car manufacturers, pharmaceutical companies and flea manufacturers. However, the United States does not produce any smartphone – even if American consumers buy more than 60 million phones per year – and the movement of production would likely increase the cost of hundreds of dollars.
"All the optimism on commercial transactions collapsed in a few minutes – a few seconds, even," said Fawad Razaqzada, market analyst at City Index and Forex.com, in a note. US Treasury Secretary Scott Bessent told Fox News on Friday that the EU threat of the EU "turn on a fire under the EU," Adding that other countries have negotiated with Washington in good faith.
"The European Union, which was formed with the main aim of taking advantage of the United States on trade, was very difficult to manage," Trump wrote on his social site of truth. "Our discussions with them are not going!"
On Friday, the European Commission refused to comment on the new threat, saying that it would expect a phone call between the head of the EU trade, Maros Sefcovic and his American counterpart Jamieson Greer, scheduled for Friday. The envoys of the 27 EU countries should also meet on trade in Brussels later during the day. Addressing journalists from The Hague, Dutch Prime Minister Dick Schoof, said he agreed with the EU strategy in commercial negotiations with the United States, and said the EU would likely see the latter announcement in the negotiations.
"We saw before the prices could go up and down in talks with the United States," He said. The White House has interrupted most of the punishing prices that Trump announced in early April in almost all countries of the world after investors furiously sold American assets, including government obligations and the US dollar. He left a reference tax of 10% on most imports in place, and then reduced his massive tax by 145% on Chinese products to 30%.
"My basic case is that they are able to reach an agreement, but I am very nervous about negotiations with the European Union," Nathan Sheets, world chief economist at Citigroup in New York said Nathan Sheets. A 50% direct debit on EU imports could increase consumer prices over everything, from German cars to Italian olive oil. Total EU exports to the United States last year totaled around 500 billion euros ($ 566 billion), led by Germany (161 billion euros), Ireland (72 billion euros) and Italy (65 billion euros). Pharmaceutical products, cars and automotive parts, chemicals and planes were among the largest exports, according to EU data. The White House has been in commercial negotiations with many countries, but the progress has been unstable. The financial leaders of the group of seven industrialized democracies tried to minimize disputes over prices earlier during the week during a forum in the Canadian rocky mountains.
"The EU is one of Trump’s least favorite regions, and it does not seem to have good relations with its leaders, which increases the chances of an extended trade war between the two," said Kathleen Brooks, research director at XTB. The actions of German car manufacturers and luxury companies, among the most exposed to prices, came across threats. Volvo Cars CEO Hakan Samuelsson told Reuters on Friday that customers should pay a large part of the cost-related cost increases and that it could become impossible to import the smallest cars of the company in the United States. But it remained hope that Europe and the United States will soon come to an agreement.
"It could not be in the interest of Europe or the United States to close trade between them," Samuelssson said. Apple refused to comment on the threat of Trump, which would reverse the exclusions he has granted on smartphones and other electronics largely imported from China, in a break for large technological companies that sell consumer goods. The shares dropped 2.5% in Friday trade.
"I have long informed Tim Cook of Apple that I expect their iPhones which will be sold in the United States of America will be manufactured and built in the United States, not in India, or anyone else," Trump said on Friday in an article on Truth Social, referring to the CEO of Apple, without additional details. Any effort to impose an apple price alone would probably face legal obstacles, according to experts.
"There is no Claire legal authority which allows specific prices of the company, but the Trump administration can try to lahorner under its emergency authorities," Sally Stewart Liang, Akin Gump partner in Washington, told Sally. The prices specific to the company would require long surveys, such as those under AntiDump, said Liang. Apple accelerates plans to make most of the iPhones sold in the United States in factories in India by the end of 2026 to navigate potentially higher prices in China. But the chances of moving production in the United States. are thinner. In February, Apple said that it would spend $ 500 billion over four years in nine American states, but this investment was not intended to provide iPhone manufacturing in the United States.
"It is difficult to imagine that Apple can be fully in accordance with this request from the president in the next 3-5 years," Da Davidson & Co analyst Gil Luria said.
