US President Donald Trump has escalated his trade war rhetoric, threatening to impose a 50% tariff on European Union goods from June 1st while also targeting Apple with potential 25% penalties over iPhone manufacturing.
In a Truth Social post, Trump declared that tariff negotiations with the EU are “going nowhere” and announced he is “recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
The threat represents a significant increase from Trump’s earlier proposal of a 20% tariff announced during his “Liberation Day” declaration in April. The president had previously paused tariff implementation last month due to impacts on American trading markets.
Trade Deficit Dispute
Trump repeated his claim that the EU was “formed for the primary purpose of taking advantage of the United States on trade,” a charge the European Commission strongly disputes. He denounced the trading bloc as “very difficult to deal with” and cited what he called an “unacceptable” trade deficit.
However, the actual size of the trade deficit remains contested. Trump claimed it amounts to $250 million annually, while the US Trade Representative’s office puts the figure at $235 billion. The European Commission estimates a much lower figure of €109 billion.
The EU has prepared countermeasures targeting €95 billion worth of American goods across multiple sectors, including aerospace companies, alcohol distilleries, and automotive manufacturers.
Irish Economic Concerns
As one of the largest European trading partners with the US, Ireland faces significant economic risks from potential tariffs. Taoiseach Micheál Martin has warned that fallout from the trade negotiations could “very well” impact Budget 2026.
Tánaiste Simon Harris, who also serves as Trade Minister, has maintained that allowing the European Commission to handle negotiations puts Ireland in a “position of strength.”
Apple Under Pressure
Trump also issued a direct threat to Apple, demanding the tech giant manufacture iPhones sold in America within US borders rather than overseas locations like India.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States,” Trump wrote, threatening a 25% tariff if the company fails to comply.
The threat could significantly impact Apple’s operations in Cork, where the company maintains its European headquarters and intellectual property rights hub. Apple’s Irish operations generate billions in tax revenue for the state and employ thousands of workers.
With more than 60 million iPhones sold annually in the US but no domestic smartphone manufacturing, implementing Trump’s demands would require massive industrial restructuring that could take decades to complete.
Diplomatic Efforts Continue
Despite Trump’s public threats, diplomatic efforts are continuing. European Trade Commissioner Maros Šefčovič is scheduled to speak with his US counterpart at 4pm today, marking the first formal discussion since Trump’s latest escalation.
Both Šefčovič and European Commission President Ursula von der Leyen have previously expressed confidence that trade disputes can be resolved through negotiation.
Trump’s morning social media posts represent the first public indication that ongoing trade talks between Washington and Brussels are facing serious difficulties.
The proposed tariffs would likely raise prices for American consumers, with iPhone costs potentially increasing by 25% if Apple penalties are implemented. The president has consistently argued that bringing manufacturing back to the US would create jobs for American citizens, though this overlooks the country’s currently high employment rate.