2025-05-23T12:01:22Z

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In a significant development that could reshape international trade dynamics, former President Donald Trump has issued a stark warning of imposing 50% tariffs on all imports from the European Union, effective next month. This announcement was made via his platform, Truth Social, and marks a new chapter in his ongoing trade dispute with Brussels, which he has previously characterized as an arrangement designed to exploit the United States.

Trump's comments come at a time when the U.S. has successfully negotiated trade agreements with both the United Kingdom and China, aimed at mitigating exposure to his often contentious trade policies. However, the proposed EU tariffs could provoke retaliation from European leaders, further complicating an already tense economic relationship. The implications of such tariffs would be far-reaching, potentially impacting a wide range of goods and services.

The European Commission has yet to respond officially to Trump's provocative remarks, but the reaction from financial markets was swift and negative. European stock markets experienced a significant downturn, with the FTSE 100 in London falling by more than 1.2%, and Germany's DAX and France's CAC 40 dropping over 2%. This bearish trend reflects investor anxiety over the potential consequences of heightened trade tensions.

Moreover, the uncertainty surrounding Trump's tariff threat contributed to a decline in global oil prices, with Brent crude futures plummeting by over 1% to reach $63 per barrel. The U.S. dollar also faced downward pressure, exacerbating existing concerns among investors about the sustainability of U.S. government debt levels. The pound sterling was observed trading at its lowest point since February 2022, highlighting the broader implications of these developments for the currency markets.

In a related announcement, Trump indicated that tech giant Apple could face a 25% tariff on its iPhones unless the company shifts its manufacturing operations to the United States. This warning, also shared on Truth Social, caused a notable decline in Apple shares, which fell by more than 2% in premarket trading. Trump stated, “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” This reiteration of his stance underscores the ongoing tensions between the former president and multinational corporations regarding their manufacturing strategies.

Currently, the majority of Apple’s iPhone production occurs in China and India, a point of contention for Trump, who has consistently advocated for domestic manufacturing. Notably, recent reports from the Financial Times suggest that Apple is indeed looking to expand its supply chain in India through partnerships with local contractors. Taiwanese manufacturer Foxconn, one of Apple’s key suppliers, is reportedly planning to establish a new factory in Tamil Nadu, India, to bolster production capacity.

As this story develops, Sky News is actively gathering more information and will provide updates accordingly. The volatility in both trade policy and market reactions underscores a critical moment for the global economy, drawing attention from both investors and policymakers alike.

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