In explosive speech, Trump requires local iPhones production and threatens to impose up to 50% tariffs on European products
US President Donald Trump intensified his trade threats on Friday (23), directing them to both the Apple smartphone giant (Aapl.O) and imports throughout the European Union, causing volatility in the global market after weeks of truce that had brought some relief. Trump threatened to impose a 25% tariff on Apple by any iPhone sold but not manufactured in the United States.
More than 60 million phones are sold annually in the country, but the US does not have smartphone manufacture. He also said he will recommend a 50% rate on the European Union from June 1, which would result in heavy taxes on luxury items, pharmaceutical products and other goods produced by European manufacturers.
Markets react negatively
The bags fell with the news. S&P 500 futures lost 1.5% pre-market, and the Eurostoxx 600 fell 2%. Apple’s shares fell 3.5% in pre-market, accompanied by other technology leaders. Trump did not give a deadline for his warning to Apple.
“All optimism regarding business agreements was eliminated in minutes – even in seconds”Wrote Fawad Razaqzada, an analyst at City Index and Forex.com, in a note.
Trump had already stirred markets in early April by imposing tariffs on almost every country in the world, including a rate of about 145% on products imported from China. Investors reacted by selling US assets, questioning the status of “safe haven” the US has always had. Although markets recovered, the confidence of companies and consumers in the US plummeted.
The negative reaction forced the White House to suspend most rates until the beginning of July, keeping only one 10% tax on imports from other countries. However, Trump left the possibility of reintroducing some rates-and this Friday’s statements end the truce.
Direct threat to Apple
“Apple’s Tim Cook for a long time, which I hope the iPhones sold in the US will be manufactured in the country, not in India or anywhere else.”said Trump in a publication on the social truth. “Otherwise, Apple is expected to pay at least 25% tariff to the US.”
The White House has been negotiating with several countries on commercial issues, but progress has been irregular. G7 Financial Leaders (group of the seven largest industrialized economies) tried to minimize conflicts in a forum in Canadian rock mountains this week.
The European Commission has refused to comment on Trump’s recommendation on the 50%tariff, stating that it will await a connection between the EU chief of commerce, Maroš šefčovič, and his American homologist Jamieson Greer, scheduled for 3 pm Greenwich time).
Actions of automakers and German luxury companies – some of the most exposed to tariffs – fell. Porsche, Mercedes (MBGN.de) and BMW (BMWG.DE) retreated more than 4% at 12:20 pm (Greenwich time). ESSILORLUXOTTIC GLUE MANUFACTURER (ESLX.PA) fell 5.5%.
Questions about the tariff directed to Apple
It is unclear if Trump can impose a fare on an individual company. Apple did not immediately respond to Reuters’s request for commentary.
After China’s rates exceeded 100% in April, the White House retreated due to market riots, exempting smartphones and other electronics – mostly imported from China – from high taxes, benefiting Apple and other technology companies that depend on imported products.
Apple accelerates plans in India
A source told Reuters that Apple plans to manufacture most US iPhones in India by the end of 2026, accelerating plans to circumvent potentially higher tariffs in China, its main production base. The company is positioning India as an alternative after Trump’s tariffs to China, which generated concerns about the supply chain and possible increases in iPhone prices.
Trump and others, including Trade Secretary Howard Lutnick, suggested that Apple could make iPhones in the US. In February, Apple announced an investment of $ 500 billion in four years to expand hiring and facilities in nine American states, but did not mention the production of iPhones in the country.
The iPhone manufacturer said most of its US smartphones sold in the quarter of June will come from India.
With information from Reuters*
Source: https://www.ocafezinho.com/2025/05/23/trump-ameaca-apple-e-ue-com-tarifa-de-25-sobre-iphones/
