U.S. President Donald Trump has intensified trade tensions, focusing his threats on both Apple and imports from the European Union. This shift comes after a period of relative market stability following earlier trade disputes. At the market's opening on Friday, the Dow Jones Industrial Average dropped by 333.4 points (0.80%), with the S&P 500 and Nasdaq also experiencing declines of 1.03% and 1.60%, respectively.
Trump proposed a 50% tariff on EU imports, which would affect luxury goods, pharmaceuticals, and other products. The European Commission has chosen not to comment, pending a conversation between EU trade chief Maros Sefcovic and his U.S. counterpart. U.S. Treasury Secretary Scott Bessent expressed hope that these threats would motivate the EU to engage more vigorously in trade negotiations.
Additionally, Trump warned Apple that it would face a 25% tariff on iPhones sold in the U.S. unless production is relocated to American soil. Currently, the U.S. lacks domestic smartphone manufacturing, with over 60 million iPhones sold annually. Trump indicated he had previously communicated these expectations to Apple CEO Tim Cook, though no specific timeline was provided.
Analysts are skeptical about the feasibility of moving iPhone production to the U.S. Dan Ives from Wedbush Securities suggested that such an initiative could take 5 to 10 years and would significantly increase production costs, rendering it impractical in the near term. Meanwhile, Apple is reportedly looking to shift most of its U.S. iPhone production to India by the end of 2026 as a response to these tariff threats.