Trump’s new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariff truce with China.
“All the optimism over trade deals wiped out in minutes – seconds, even,” said Fawad Razaqzada, market analyst at StoneX.
Trump said on his Truth Social platform that he was “recommending a straight 50 per cent Tariff on the European Union” from Jun 1 as “discussions with them are going nowhere!”
“The EU is one of Trump’s least favourite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two,” said Kathleen Brooks, research director at trading platform XTB.
The US president had announced 20 per cent tariffs on EU goods last month but suspended the measure to give space for negotiations.
Trump, however, maintained a 10 per cent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 per cent duties on the car, steel and aluminium industries.
He also threatened on Friday to hit Apple with a 25 per cent tariff if its iPhones are not manufactured in the United States.
Trump initially said the tariff would apply only to Apple – an unusual move in singling out a specific company in trade policy.
However, he later expanded the threat to include all smartphone manufacturers, telling reporters the levy could also hit Samsung.
Trump’s social media outburst rocked stock markets, which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.
Source: CNA
