US President Donald Trump re-escalated his trade threats on Friday, targeting smartphone giant Apple along with imports from the entire European Union, sending the global market roiling after weeks of de-escalation provided some reprieve.
Trump threatened to impose a 25 per cent tariff on Apple for any iPhones sold, but not manufactured, in the United States.
More than 60 million phones are sold in the United States annually, but the country has no smartphone manufacturing. He also said he would recommend a 50 per cent tariff on the European Union to begin on June 1, which would result in stiff levies on luxury items, pharmaceuticals and other goods produced by European manufacturers.
Markets dropped on the news. S&P 500 futures lost 1.5 per cent in premarket activity and the Eurostoxx 600 fell 2 per cent. Shares of Apple fell 3.5 per cent in premarket trading, along with shares of other technology bellwethers. Trump did not give a time frame for his warning to Apple.
“I have long ago informed Tim Cook of Apple that I expect their iPhones 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 said in a post on Truth Social.
“If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the US.”
