President Trump reignited his trade war on Friday, warning of hefty tariffs on the European Union and threatening Apple with tariffs unless their products are made in the United States.
This renewed aggression appears to come just weeks after Trump paused his “liberation day” tariffs, including those on China and various global markets.
The timing of this trade war revival correlates with an uptick in Trump’s approval ratings.
It’s hard to predict how this latest move regarding Apple and Europe will influence voter perceptions, although it’s noteworthy that the stock market reacted negatively.
Both the Dow Jones Industrial Average, S&P 500, and Nasdaq opened and closed in the red.
Trump hinted at various changes via his preferred social media platform, Truth Social.
He proposed a 50% tariff on the European Union and raised the previously suggested tariff to 25%, which is more than double what he originally threatened after the announcement. He later indicated that tariffs would also be directed at mobile phones manufactured abroad.
This decision comes just a day after the House voted in favor of tax cuts and other items related to Trump’s expansive “big beautiful bill.”
Some sources expressed astonishment at the new direction.
“It appears he’s making these moves without much backing. [Treasury Secretary] Scott Bescent seemed perplexed. What’s the objective here?” commented someone close to the administration.
“It’s unfortunate that the president, who desperately wants business success, doesn’t embody the qualities typical in a successful CEO,” the individual added.
On Friday, Trump characterized the EU as “very tough to negotiate with,” proposing that a 50% tariff commence on June 1st, noting that discussions “aren’t progressing well.”
“That’s right. They’re not treating us right,” Trump told reporters.
He further suggested that it was time for him to take a harder stance against the EU.
“I decided it’s time to play tough. They’ve been using representatives that don’t benefit us, and that stops now,” Trump remarked.
Bescent mentioned in an appearance on Fox News’ “American Newsroom” that trade discussions with Asian countries are advancing without further announcements, but Trump’s recent actions seem to set the pace for EU negotiations.
“I won’t negotiate publicly, but I hope this lights a fire under the EU,” Bescent added.
Recently, the administration announced an agreement with China that would reduce tariffs from 30% to 145%, and some believe this influenced Trump’s decision to target the EU on Friday.
There’s a notion that while he seems to have gained ground with China, Trump feels the need to redirect his efforts elsewhere.
Meanwhile, attention on Apple intensified after Trump spoke with CEO Tim Cook last week about “building in India.” He has consistently pushed for companies to bring manufacturing back to the US to sidestep tariffs.
Although Apple primarily produces its products in China, the company has shared plans to diversify its supply chain, expand into India and Vietnam, and erect a new factory in Texas, committing to invest $500 billion in the US over the next four years.
Trump told Cook that the iPhone should be made stateside, claiming Apple is confident in its capability to produce domestically. He mentioned a 25% tariff would take effect at the end of June, which would also impact Samsung due to similarities in their products.
“I understand that Tim is considering India for his plants. That’s fine, but products sold here need to be made here, or there will be tariffs,” Trump stated.
“If the iPhone is going to be sold in the US, it must be made here,” he emphasized.
Former officials from Trump’s administration argue that this new threat of tariffs reflects a lack of understanding about the economic consequences such uncertainty can impose on businesses.
“This appears to be another instance of someone whose experience in business is solely derived from running a closely-held family business, far removed from the unpredictable nature of public market performance,” one former official noted. “If Trump experienced a day in a public corporation, he might appreciate the overwhelming stress caused by these recurrent tariff threats.”
Apple is already facing challenges due to tariffs. Cook previously indicated that impending tariffs could potentially reduce profits in the second quarter, estimating an additional $900 million in expenses.
Additionally, the US faces significant trade imbalances with the EU, reporting a $236 billion deficit last year, while maintaining a $75.6 billion surplus in services exported to the EU.
Trump often claims that the EU takes advantage of the US, stating on Friday, “I’m not pursuing a deal. If we set up a deal, it starts at 50%.”
“However, if they construct plants here, there will be no tariffs,” he reiterated.
Vice President Vance echoed concerns about boosting US manufacturing during his speech at the Naval Academy graduation shortly after Trump’s tariff announcement.
“Our leaders exchanged soft power for hard power,” he told attendees. “We’ve stopped producing essential items, from vehicles to military equipment.”
“Many believed that integrating economically would naturally cultivate peace, making countries like China resemble the US,” he concluded.
