President Donald Trump escalated trade tensions by threatening a 50% tariff on all European Union imports and a 25% tariff on Apple products unless iPhones are manufactured in the United States.

According to Yahoo News, the announcements, made via Truth Social, underscore Trump’s aggressive trade policy and his ongoing push to bring manufacturing back to American soil, though his tariffs have yet to deliver the trade agreements or domestic manufacturing resurgence he has promised.

Frustrated by the lack of progress in trade negotiations with the European Union, a key U.S. ally, Trump proposed a 50% tariff on EU goods effective June 1, 2025.

This rate is notably higher than the recently reduced 30% tariff on Chinese imports, which was lowered to facilitate U.S.-China trade talks. The EU has offered to mutually eliminate tariffs, but Trump insists on maintaining a minimum 10% tax on most imports.

“Our discussions with them are going nowhere!” Trump wrote on Truth Social.

“Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States.”

Trump also targeted Apple, demanding that iPhones sold in the U.S. be produced domestically rather than in Asia.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” he posted. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

Apple CEO Tim Cook recently noted that most iPhones sold in the U.S. this fiscal quarter are manufactured in India, with iPads and other devices sourced from Vietnam.

Analysts warn that shifting production to the U.S. could significantly increase costs, potentially raising the price of a $1,200 iPhone to between $1,500 and $3,500.

Trump’s posts triggered an immediate market response, with S&P 500 futures dropping approximately 1.3%.

Investors have grown increasingly sensitive to the president’s tariff announcements, with markets often declining in response to new trade barriers and recovering when threats are scaled back.

The proposed tariffs add to the uncertainty and inflationary pressures already affecting major U.S. companies like Apple, Amazon, and Walmart.

Trump’s tariff strategy continues to disrupt global trade dynamics, raising questions about its effectiveness in achieving his goals of revitalizing U.S. manufacturing and securing favorable trade deals.

The core of Trump’s argument against the EU is that America runs a “totally unacceptable” trade deficit with the 27 member states. Countries run trade deficits when they import more goods than they export.