President Trump ignited fears of renewed trade wars on Friday, warning of steep tariffs impacting European imports and challenging Apple over its manufacturing practices. In a series of posts on social media, he indicated that discussions with the European Union had become stagnant, proposing a staggering 50% tariff on European goods set to begin June 1.
Mr. Trump criticized the EU, arguing that it was created to exploit American trade advantages, which he believes has led to an unacceptable trade deficit with the United States. His posts also included a direct admonition to Apple CEO Tim Cook, demanding that iPhones sold in America be produced domestically rather than in countries like India, or face a significant 25% tariff.
These statements sent shockwaves through financial markets, leading to a sharp drop in stock futures during premarket trading hours. The timing of the posts appears to coincide with a recent period of relative calm in U.S. trade relations, as the administration had recently paused implementing additional tariffs to focus on negotiations and a complex tax bill in Congress.
With trade discussions back in turmoil, the potential fallout could disrupt companies reliant on international markets, echoing earlier tremors felt during Trump’s initial term when tariffs were announced in rapid succession, unsettling investors and threatening economic stability. As tensions rise, the impact of these threats is yet to be foreseen, but markets remain on edge as negotiations continue to stall.
