President Donald Trump has warned he will add a 50 percent tax on imports from Europe and a 25 percent levy on all phones bought in the United States if they are not made at home. The announcement sent markets lower. Stock indexes in the US and Europe fell. The dollar slipped. The price of gold rose as investors sought safety.
Background on the EU disputes
The White House says talks with the European Union have been too slow. Trump says the EU has treated the US unfairly by limiting car sales in its markets. He added that if EU firms build plants here, there will be no new tax. He said he is not seeking a deal before June.
Impact on markets and growth
News of the tariffs rattled traders. When trade tensions rise, investors fear slower growth. US Treasury yields fell as bond prices rose. Shares of European firms dropped. Safe havens like gold gained value.
Apple and phone production
Trump singled out Apple and said he will charge 25 percent on every phone brought into the country. He noted that even Samsung would be hit by the same rule if their phones were not built here. He has long pushed Apple to bring production back to the US. Apple is planning to build more iPhones in India by 2026, but not in the US. The company said its big US investment does not cover phone plants.
Views from Europe and Japan
EU trade chief Maros Sefcovic said the union is ready to find a fair deal. He spoke after a call with US trade officials. He said EU trade must rest on respect rather than threats. Dutch leaders said they expect these talks to keep changing and that the EU will stick to its plan.
In talks with Japan, negotiators spoke of widening trade and security issues. Japan’s top trade official said a deal by the G7 summit would be nice but not rushed. He noted that rushing to meet a deadline can leave a country at a loss.
What this means for consumers
If rules go into effect on June first, prices on cars, olive oil, and many other goods could jump in US shops. Phones could cost hundreds of dollars more. US buyers of imported phones may face much higher bills if Apple or any phone maker does not move its factories here. The threat shows how trade fights can return without warning. Companies and shoppers may need to plan for higher costs if these plans move ahead.