Trump’s Tariff Threats Spark New Tensions with EU and Tech Giants

As global markets navigate growing economic uncertainty, U.S. President Donald Trump has reignited trade tensions by threatening steep tariffs on European imports and foreign-made smartphones. The move signals a more aggressive phase in Trump’s trade agenda and has left both businesses and international allies bracing for impact.

Trump threatens steep tariffs, escalating trade tensions with EU, tech firms.

Tariff Deadline Approaches

Trump confirmed plans to impose a 50% tariff on goods from the European Union, criticizing the bloc for slow-moving negotiations and what he claims are unfair regulations against American companies. The tariff is set to take effect June 1, unless a breakthrough is reached.

“This is how I play the game,” Trump told reporters, dismissing the EU’s efforts to negotiate a reduced rate.

Smartphones Targeted

In addition to targeting European trade, Trump floated a 25% tariff on all foreign-made smartphones—specifically naming Apple and Samsung. He argued that American consumers deserve a level playing field and suggested that companies should manufacture their products in the U.S. to avoid the tariffs.

“If you want to sell here, build here,” he said, referencing Apple’s plans to shift some production from China to India.

Markets React, Tech Stocks Drop

The announcement jolted financial markets, with Apple shares falling more than 3% and broader tech indices sliding. Although Treasury Secretary Scott Bessent attempted to calm markets by suggesting trade deals were still possible, Trump’s statement that he’s “not looking for a deal” cast doubt on that outlook.

EU Warns of Retaliation

European leaders expressed disappointment, with Irish Prime Minister Micheál Martin calling the tariffs “enormously damaging.” The EU has prepared counter-tariffs on up to €95 billion in U.S. exports, should negotiations fail. While Brussels hopes for de-escalation, it has made it clear that it will respond if provoked.

Economic Risks Mount

Economists warn that these measures could severely disrupt U.S.-EU trade, which currently totals around $321 billion. Bloomberg Economics estimates a potential 0.6% hit to U.S. GDP and a consumer price increase of over 0.3%.

Conclusion: More Than Just Posturing?

While some observers view Trump’s rhetoric as a negotiation tactic, the timing and tone suggest a real willingness to follow through. With tariffs looming and talks at a standstill, businesses are left in limbo—caught between political posturing and the real economic consequences of a full-blown trade conflict. As June approaches, all eyes are on whether either side will blink.