Trump threatens 50% tariffs on EU and 25% on iPhones

US President Donald Trump reignited trade tensions on Friday, threatening a 50% tariff on all goods sent to the United States from the European Union.

He also threatened to impose a 25% import tax "at least" on iPhones not manufactured in America.

The warning against the EU came just hours before the two sides were set to have trade talks. Trump last month announced a 20% tariff on most EU goods, but had halved it to 10% until 8 July to allow time for talks.

"Our discussions with them are going nowhere!" Trump wrote in a post on social media on Friday. He said he was recommending that new tariffs kick in on 1 June.

In remarks to reporters at the White House later, Trump said his plan was set.

"I'm not looking for a deal - we've set the deal," he said, before immediately adding that a big investment in the US by a European company might make him open to a delay.

The EU did not immediately respond to the threat. Politicians from members of the bloc greeted it with dismay but said they did not expect to shift strategy.

"We are maintaining the same line: de-escalation, but we are ready to respond," French Foreign Minister Laurent Saint-Martin wrote on social media on Friday morning, adding that the latest threats were "not helping" the negotiations.

Analysts said it remained to be seen whether the rhetoric would turn into reality.

"We have to keep in mind that at this point, this is a threat. It's not an announcement. There is no executive order," trade expert Aslak Berg from the Centre for European Reform told the BBC.

He said he thought Trump's post was intended to increase leverage ahead of the negotiations.

"But the fact of the matter is the EU is not going to budge. They are going to stay calm, carry on and it will be a very difficult discussion this afternoon."

Since re-entering the White House, Trump has imposed and threatened various tariffs on goods from countries around the world, arguing that the policies will boost US manufacturing and protect jobs from foreign competition.

A tariff is a tax levied on goods as they enter a country. The announcements have sparked worries globally, because they will make it more expensive and difficult for foreign businesses to sell goods in the world's largest economy.

But Trump has also backed down from some of his most aggressive proposals after financial market turmoil and business outcry in the US.

Shares in the US and EU fell on Friday after the latest threats, with the S&P 500 down about 1% and Germany's Dax and France's Cac 40 ending the day down more than 1.5%.

Shares in Apple, which had won relief last month when Trump exempted key electronics including smartphones from his tariffs, fell about 2.7%.

Officials at the time warned it would be temporary. Speaking to reporters later on Friday, Trump said he did not intend to single out Apple but planned to apply the duties to all smart phones, which could start by the end of June.

The EU is one of the US's largest trading partners, sending more than $600bn in goods to the US last year and buying about $370bn worth, according to US government figures.

Trump's complaints about Europe have focused on that uneven trade relationship, as the EU sells more goods to the US than it buys from America.

He blames this trade deficit on policies that he says are unfair to American companies, and he has specifically raised concerns about policies related to cars and agricultural products.

He targeted goods from the EU with a 20% tariff in his so-called Liberation Day announcement last month, which set off a flurry of negotiations between the US and countries around the world.

While some countries, especially smaller ones, have taken a conciliatory approach, the EU, like China and Canada, has pushed back harder against the threats, saying it is prepared to retaliate by raising its own tariffs on US products.

On Friday, Trump said the EU had been "very difficult to deal with".

"Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025," he added.

Speaking to Fox News on Friday, US Treasury Secretary Scott Bessent said the US wanted to see more concessions from Europe.

"I believe the president believes that the EU proposals have not been of the same quality that we've seen from our other important trading partners," he said.

"I would hope this would light a fire under the EU," he added.

Ireland's Taoiseach Micheál Martin said the EU had been engaging in "good faith" and warned that tariffs would be damaging to both sides.

"We do not need to go down this road," he said. "Negotiations are the best and only sustainable way forward."

Dutch Prime Minister Dick Schoof said the EU would "stick to the path" it had chosen.

"At the same time we will see how negotiations will proceed after today's announcement. We have seen before that tariffs can go up and down in talks with the US," he added, according to Reuters.

German Economy Minister Katherina Reiche said her country needed "more trade, not less".

"We must do everything to ensure that the European Commission reaches a negotiated solution with the United States," she said.

Trump has ploughed ahead with tariffs, despite widespread concern among experts that the new taxes will lead to economic damage while doing little to achieve his aims.

On Friday, Wedbush Securities analyst Dan Ives said the idea that Apple would make iPhones in the US was a "fairy tale that is not feasible".

He added that he expected Apple to continue to be able to navigate the situation, despite the latest attack from Trump, who has long singled out the company as one he wants to see manufacturing in the US.

Trump met with Apple chief executive Tim Cook at the White House earlier this week, after expressing unhappiness about the firm's response to the tariffs.

Earlier this month, company said it was shifting production of most of its iPhones and other devices destined to be sold in the US away from China, but towards countries such as India and Vietnam, rather than the US.

Trump earlier this month said he had a "little problem" with Mr Cook, and had warned him: 'I don't want you building in India.'"

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