Trump Threatens Heavy Taxes on EU and iPhones to Encourage Manufacturing Return to the U.S.
On May 23, President Trump reignited the trade war by threatening a 50% tariff on goods imported from the EU and planning to impose a 25% tax on all iPhones and smartphones manufactured overseas.
In a social media post, Trump stated that the EU is "very tough" in trade negotiations, declaring a 50% tariff on EU products starting June 1. He specifically mentioned Apple CEO Tim Cook, stating that iPhones sold in the U.S. must be manufactured domestically to avoid tariffs.
This new tax will extend to other smartphone manufacturers producing abroad, emphasizing that targeting only one company would be unfair. The stocks of Apple dropped 3% on the news.
The White House indicated that this move aims to increase pressure on American companies to return manufacturing to the U.S. while punishing allies perceived as engaging in unfair trade.
