President Donald Trump has threatened to impose a 25% tariff on cellphones produced overseas by Apple and other companies, with a deadline set for the end of June. This announcement follows an extension of a proposed 50% tariff on European Union (EU) products, which Trump has postponed until July 9. He revealed the extension after a call with Ursula von der Leyen, President of the European Commission, who suggested that additional discussions were needed to address trade relations effectively. In her response on social media, von der Leyen highlighted the significance of the EU-U.S. trade relationship and expressed readiness to engage in rapid negotiations.
Trump’s threats of tariffs come after he had previously paused reciprocal tariffs on the EU and other nations in April. He has criticized the EU as difficult to negotiate with, alleging that it was designed to exploit U.S. trade. The proposed 50% tariffs would impact approximately $606 billion worth of imports from the EU, which represents a major portion of goods exported to the U.S., including pharmaceuticals, automobiles, and machinery.
The EU is the largest trading partner of the U.S., making up 21% of exports, and the situation has raised concerns about further tensions in international trade. Trump’s tariff threats have previously led to volatility in financial markets. Negotiations with various countries, including China, have been ongoing since April, although only a deal with the United Kingdom has been finalized to date. The implications of these tariffs could dramatically affect consumer prices, with speculation about significant price increases for products like iPhones if manufactured in the U.S.
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