U.S. President Donald Trump has issued fresh threats of launching a new trade war, this time targeting the European Union with a proposed 50% tariff to take effect starting June 1, 2025.

Trump also took aim at Apple, warning that a 25% import tax might be imposed on all iPhones purchased by American consumers.

These back-to-back threats were posted on social media shortly after the Trump administration agreed to suspend high tariffs on Chinese goods following a trade deal reached in Geneva, Switzerland.

Trump's attack on the European Union was reportedly fueled by the White House's frustration over the slow pace of trade negotiations with the bloc. The announcement also signals a potential revival of the sporadic trade wars that have caused global market turmoil.

Meanwhile, Trump's specific pressure on Apple is part of his broader effort to compel major corporations to shift their manufacturing back to the United States.

As a point of reference, the U.S. currently does not manufacture smartphones domestically. Yet, American consumers purchase over 60 million units annually. Analysts suggest that relocating Apple’s production to the U.S. could add hundreds of dollars to the price of each iPhone.

“All optimism about a trade deal evaporated in a matter of minutes, even seconds,” said Fawad Razaqzada, a market analyst at City Index and FOREX.com, in a note quoted by Reuters on Saturday, May 24, 2025.

U.S. Treasury Secretary Scott Bessent told Fox News that the proposed 50% tariff on EU goods is intended to push forward stalled trade negotiations. He emphasized that many other countries have already entered talks in good faith.

“The European Union, which was created largely to take advantage of the United States in TRADE, is very hard to deal with,” Trump wrote on his Truth Social platform. “Our discussions with them will lead to nothing!” he added.

The European Commission declined to comment on Trump’s new threats, saying it would wait for a scheduled phone call between EU Trade Commissioner Maros Sefcovic and his U.S. counterpart, Jamieson Greer, on Friday, May 23.

Envoys from the 27 EU member states are also set to convene in Brussels to discuss trade matters.

Speaking to reporters in The Hague, Dutch Prime Minister Dick Schoof stated that he supports the EU’s strategy in handling trade talks with the U.S., suggesting that the latest announcement might be viewed as a negotiation tactic.

“We’ve seen before that tariffs can go up and down during talks with the U.S.,” Schoof remarked.

Earlier in April, the White House rolled back most of the Trump-era tariffs that had been imposed on nearly every country, following a sharp sell-off by investors of U.S. assets including government bonds and the dollar.

Nonetheless, a basic import tax of 10% remains in place for most goods, while the maximum tariff on Chinese imports was reduced from 145% to 30%.

“My base case is that they can reach a deal, but I’m most concerned about negotiations with the European Union,” said Nathan Sheets, Global Chief Economist at Citigroup in New York.

Imposing a 50% tariff on EU imports could significantly raise consumer prices in the U.S. for products such as German automobiles and Italian olive oil.

Last year, the EU’s total exports to the United States were valued at around 500 billion euros. Germany led the way with 161 billion euros, followed by Ireland at 72 billion euros and Italy at 65 billion euros.

Major export categories included pharmaceuticals, automobiles and auto parts, chemicals, and aircraft, according to data from the European Union.