President Donald Trump has unveiled a plan to implement a 50% tariff on all European Union imports starting June 1, citing what he described as persistent trade inequities and failed negotiations with EU leaders.
The sweeping tariff would apply to a broad range of goods including cars, food products, and pharmaceuticals. Trump emphasized that the policy is aimed at protecting American jobs and industries, warning that foreign products will face steep penalties unless manufactured domestically.
In a parallel move, the president also floated the possibility of a 25% tariff on smartphones made outside the United States. Companies like Apple and Samsung were indirectly called out, with Trump urging them to bring manufacturing back to the U.S. to avoid penalties.
Markets reacted quickly to the news, with major stock indexes in both the U.S. and Europe falling in early trading. Technology shares, including Apple’s, saw notable declines amid investor concerns about supply chain disruptions and higher costs.
European officials expressed disappointment over the announcement and signaled both a willingness to negotiate and a readiness to respond with countermeasures if necessary. The tariff threat signals a sharp escalation in the already strained economic relationship between the United States and the European Union.