President Donald Trump reignited global trade tensions on May 23 by announcing plans to impose a 50% tariff on all European Union imports starting June 1. In a separate move, he also threatened a 25% tariff on all foreign-made iPhones, including those from Apple and Samsung, if production is not shifted to the U.S.

The announcement, made via social media and reiterated in Oval Office remarks, immediately sent shockwaves through global markets. European and U.S. stocks fell, the dollar weakened, and gold prices surged as investors fled to safe-haven assets.

Trump’s attack on Apple is part of his wider effort to force U.S. companies to repatriate production. Although Apple has announced a $500 billion U.S. investment over four years, it does not include iPhone manufacturing. Analysts say moving production from Asia to the U.S. is unlikely in the short term due to infrastructure constraints.

Trump warned that if companies fail to build plants in the U.S., “there’s no tariff if they build here,” but he is “not looking for a deal.”

The European Commission responded by emphasizing diplomacy, with Trade Chief Maros Sefcovic stating EU-U.S. trade “must be guided by mutual respect, not threats.” Dutch Prime Minister Dick Schoof called the move “part of the negotiations,” while also noting that tariffs are a recurring tactic from Trump.

The EU exported approximately €500 billion worth of goods to the U.S. last year, with Germany, Ireland, and Italy among the top contributors. A 50% tariff would severely impact sectors like automotive, chemicals, and aerospace.