Trump calls for 50% tariffs on EU imports from June 1

US President Donald Trump announced on Friday that he is recommending a 50% tariff on goods from the European Union, citing a stalemate in trade talks.

"Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025," he wrote on social media.

In a post on Truth Social, Trump reiterated his criticism of the EU, saying that the bloc, which "was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with."

He also complained about the EU's "powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more."

At the end of the post, Trump reminded readers that products made in the US are not subject to tariffs.

How did the EU react to Trump's tariff threat?

The EU Commission declined to comment on Trump's post, saying it would wait until for a phone call between EU trade chief Maros Sefcovic and his US counterpart Jamieson Greer to take place at 1500 GMT.

Meanwhile, the euro fell, reversing earlier gains that had been made after the previous Trump tariff threat, reigniting investor fears about the impact of duties on the world economy and trade.

European markets fell almost immediately after Trump's posts. Germany's DAX, a stock market index made up of the 40 largest German blue-chip companies traded on the Frankfurt Stock Exchange, quickly swung to a 1.9% loss, while the analogous French benchmark, CAC 40, fell 2.4%.

The FTSE 100, the United Kingdom's most well-known stock market index comprised of the 100 most highly capitalized blue-chip companies listed on the London Stock Exchange, fell 1.1%.

US markets also experienced a decline. Futures for the S&P 500 and the Dow Jones Industrial Average slid 1.5% and Nasdaq futures tumbled 1.7% before the bell. Oil prices fell and Treasury yields sank as well.

Trump also threatens Apple with 25% tariffs on iPhones

Earlier in the day, before suggesting 50% tariffs on EU imports, Trump threatened Apple with a 25% tariff on iPhones sold but not manufactured in the United States.

"I have long ago informed Tim Cook of Apple that I expect their iPhone's [sic] that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump wrote on Truth Social.

"If that is not the case, a Tariff of at least 25% must be paid by Apple to the US," he added.

Trump has long insisted that Apple manufacture iPhones in the US. However, experts argue that this would require significant investments and would drastically increase the cost of smartphones.

While Apple primarily produces iPhones in China, it has also increased production in India in recent years.

Edited by: Alex Berry