title: US President Donald Trump has reportedly announced a 50% tariff on the European Union

US President Donald Trump has reportedly announced a 50% tariff on the European Union, starting on June 1, 2025. This development follows Trump’s Truth Social post that threatened Apple with a 25% tariff on iPhones not manufactured in the US.

US President Donald Trump has reportedly announced a 50% tariff on the European Union, starting on June 1, 2025. This development follows Trump’s Truth Social post that threatened Apple with a 25% tariff on iPhones not manufactured in the US.

Trump’s Trade Tensions Escalate with 50% EU Tariff

“The European Union… has been very difficult to deal with,” said Trump in his latest Truth Social post.

According to latest reports, President Trump has announced his decision to impose a 50% tax on goods imported from the EU, starting on June 1, 2025.

Further, recommending the tariff, Donald Trump added, “Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable.”

The EU ambassador stated that the bloc is open to restarting trade talks but expressed disappointment that the U.S. withdrew from the Transatlantic Trade and Investment Partnership (TTIP) agreement in 2016.

However, Treasury Secretary Scott Bessent states that Trump will announce more trade deals in a 90-day tariff delay period. Thus, experts and analysts keenly watch for market movements amidst these possible developments.

Trump’s Apple iPhone Tariff

Notably, EU tariff updates were released just minutes after his post on Truth Social, where he threatened to impose a 25% tariff on Apple unless the company manufactures iPhones in the United States.

His Truth Social post read, “I have long ago informed Tim Cook, of Apple, that I expect their IPHONES that will be sold in the United States of America to be manufactured and built in the United States, not India, or anyplace else.”

Significantly, this move follows Apple’s decision to manufacture iPhones in the newly built plants in India for the U.S. market. During his recent Middle East trip, Trump expressed displeasure on the same with Apple CEO Tim Cook.

After discussing the matter with his administration officials, Trump reportedly decided against the 25% tariff on all goods from China. Instead, he opted for a 10% tariff, which was later reduced to 5% in 2024.

How Did Stock and Crypto Markets React?

In response to the escalating pressures, the crypto market experienced a sharp decline to $3.42 trillion, down by 2.58%.

Though Bitcoin recently reached a new all-time high of $111k, it dipped to $108k following Trump’s announcements. Other major tokens like Ethereum (ETH) and XRP have also faced notable dips of 1.82% and 2.09%, respectively.

While the crypto market initially rose on speculation of a U.S.-UK trade deal, it sharply fell after the deal was announced.

Additionally, European stock markets experienced a significant downturn. Germany’s DAX index dropped by 2.6%, France’s CAC index fell by 2.8%, and London’s FTSE index declined by 1.3%.

This sharp decline reflects investor concerns over Trump’s trade policies and potential tariffs, highlighting the interconnectedness of global markets.

Meanwhile, Marcel Fratzscher, head of the German Institute for Economic Research, slammed the EU Commission and Germany’s approach to trade negotiations with Donald Trump.

He asserted, “The strategy of the EU Commission and Germany in the trade conflict with Trump is a total failure. This was a failure you could see coming — Trump sees Europe’s wavering, hesitation and concessions as the weaknesses that they are.”