Trump steps up trade threats, targeting Apple and the EU

US President Donald Trump has stepped up his trade threats, targeting tech giant Apple as well as imports from across the European Union, roiling global markets after weeks of de-escalation that had brought some relief.

Trump has threatened to impose a 25 percent tariff on all iPhones sold but not made in the United States. More than 60 million phones are sold annually in the United States, but the country has no smartphone manufacturing operations. He also said he would recommend a 50 percent tariff on goods from the European Union starting June 1, which would mean high duties on luxury goods, pharmaceuticals and other goods made by European manufacturers, Reuters reports.

Markets fell on the news. Trump did not give a timeframe for his threat to Apple.

"I have long informed Tim Cook of Apple that I expect iPhones to be sold in the United States to be manufactured and assembled in the United States, not in India or anywhere else," Trump wrote on his Truth Social platform.

"If that's not the case, Apple must pay a tariff of at least 25 percent to the United States."

The White House is negotiating with a number of countries on trade issues, but progress has been shaky.

Trump's aggressive tariffs in April, which would raise the price consumers and companies must pay for imported goods by about 25 percent, sent U.S. assets, including stocks, the dollar and Treasury bonds, plunging. Markets have since recovered.

It is unclear whether Trump has the authority to impose tariffs on individual companies. Apple did not immediately respond to a Reuters request for comment.

The European Commission also declined to comment on Trump's announcement, saying it would wait for a phone call between European Trade Commissioner Maroš Šefčovič and his US counterpart Jameson Greer, scheduled for this afternoon, Reuters reports.

After Trump's tariffs on China rose to more than 100 percent in early April, the White House relented to market turmoil, allowing exceptions for smartphones and other electronics mostly imported from China - a relief for Apple and other import-dependent tech companies.

Apple plans to make most of its iPhones sold in the United States in India by the end of 2026, and is accelerating those plans to avoid potentially higher tariffs in China, where most of its production is currently done, a source told Reuters. Apple is positioning India as an alternative manufacturing base after Trump's tariffs on China raised concerns about supply chains and fears of rising iPhone prices, Reuters reported last month.

The iPhone maker said that the majority of smartphones sold in the US during the second quarter of this year will originate from India.