US President Donald Trump has said he is recommending a 50% tariff on all goods from the European Union being imported to the United States.
“Our discussions with them are going nowhere!” he wrote in a post on social media on Friday. He said the new tariffs will kick in on 1 June.
The announcement marks an escalation of Trump’s trade war with the EU. He initially proposed a 20% tariff on most EU goods, but halved it to 10% until 8 July to allow time for talks.
The president also threatened to impose a 25% import tax “at least” on iPhones not manufactured in America.
“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,” Trump said.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Since re-entering the White House, Trump has imposed and threatened various tariffs on countries around the world, which he sees as a way of boosting US manufacturing and protecting jobs from foreign competition.
A tariff is a domestic tax levied on goods as they enter a country, proportional to the value of the import and it is paid by the business importing them.
The prospect of higher tariffs being introduced on imports to the US has rattled many world leaders because it will make it more expensive and difficult for businesses to sell goods in the world’s largest economy.
On Friday, Trump said the EU had been “very difficult to deal with” and that the bloc had been formed “for the primary purpose of taking advantage” of the United States on trade.
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” he added.
Trump said there would be no tariff charged if the product was “built or manufactured in the United States”.
The president has slapped tariffs on imports from the EU to the US in a bid to address his country’s long-standing trade deficit with the bloc, which occurs when a country imports more than it exports.
According to US government figures, exports to the EU last year were $370.2bn, while goods coming the other way were $605.8bn.
Trump has repeatedly complained about the EU’s car exports, particularly from Germany, to the US, with fewer vehicles being shipped the other way.
The EU has not commented on the latest announcement.
The boss of carmaker Volvo said in response to Trump’s threat that customers would have to pay a large part of the cost increases resulting from tariffs.
Hakan Samuelsson told Reuters that a 50% tariff would limit the ability of the company to sell its Belgium-made EX30 electric vehicle across the Atlantic.
But he said he believed there would be a deal soon. “It could not be in the interest of Europe or the US to shut down trade between them,” he said.
While some higher tariffs have been paused by Trump, foreign-made cars have faced a 25% levy since April.
Trump’s warning to Apple comes after the tech giant said it was shifting production of most of its iPhones and other devices destined to be sold in the US away from China.
Apple chief executive Tim Cook said earlier this month that the majority of the iPhones bound for the US market in the coming months are to be made in India, while Vietnam will be a major production hub for items like iPads and Apple Watches.
All three of Europe’s main stock markets, including the UK’s FTSE 100, were down in Friday afternoon trading.
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