US President Donald Trump has threatened to impose a 50 percent tariff on the European Union (EU). He has also threatened to impose a 25 percent tariff on all imported iPhones. The proposed tariff will be effective from June 1. Trump made these remarks in a post on his social media account Truth Social on Friday. According to him, the negotiation with the EU is becoming more difficult day by day. The ongoing negotiations with them are not being fruitful. In this context, there is a fear that the ongoing trade war will intensify.
EU leaders have been shaken by Trump's threats. EU trade chief Maros Sefcovic said the 27-nation bloc was committed to reaching a trade deal with the United States based on respect, not threats. Sefcovic also spoke by phone with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
The US tariff threat comes at a time when tariff talks between the two sides are at a standstill. The US wants the EU to unilaterally open its markets to US businesses. Trump wrote on Truth Social that the US is losing $250 billion a year due to EU trade barriers, financial manipulation and frivolous lawsuits against US companies. This is unacceptable.
The country imposed a 20 percent tariff on European goods in April. It later halved the tariffs and set a 90-day negotiation period until July 8. The EU's total exports to the United States last year were about 500 billion euros ($566 billion).
Dutch Prime Minister Dick Schoff said the EU would stick to its strategy. French Trade Minister Laurent Saint-Martin said, "We are in favor of de-escalation. But we are also ready for a response." Trump's threat to impose a 25 percent tariff on all imported iPhones is seen by analysts as a tactic by Trump to bring iPhone production back to the United States.
Stock markets around the world fell sharply on Friday after the EU threatened to impose new tariffs on Apple products. Wall Street's three major indexes were in decline throughout the day. The technology-based Nasdaq index suffered the biggest blow. Apple shares alone fell 3 percent. The markets in Paris and Frankfurt each fell about 1.5 percent. London's FTSE 100 index also turned negative at the end of the day after an initial increase. Germany's DAX index rose slightly at the beginning of the day but fell later.
US angered by India's move to retaliate against tariffs
The United States has filed a complaint against India at the World Trade Organization (WTO) amid negotiations over a bilateral trade deal. The country imports about $3 billion worth of steel from India annually. In February, the Trump administration announced an additional 25 percent import duty on aluminum and steel products. India has sought talks on the matter, but Washington has not responded. The Modi government has since sent a request to the WTO to impose tariffs on 29 products imported from the United States.
