TRUMP IS AIMING NEW TARIFF SALVO AT APPLE AND E.U.

TALKS ‘GOING NOWHERE’ — Tells Tech Giant to Build in U.S. and Bloc to Lower Barriers

Author

Matt Davis
May 24, 2025

Morning! Today’s lead story is by Ana Swanson, Jeanna Smialek and Adam Satariano.

On Friday, President Trump reignited tensions in global trade by threatening to impose higher tariffs on the European Union and companies like Apple, which experts warn could destabilize recent efforts to soothe international trade relations.

The timing of Trump's renewed tariff threat comes amidst his focus on a Middle East trip and significant tax legislation on Capitol Hill. The president communicated his. er…stance…via Truth Social, criticizing the European Union for allegedly exploiting the United States.

"The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with."

Not this again.

Trump's rhetoric wasn’t reserved solely for the EU. He also issued warnings to Tim Cook, Apple’s CEO, suggesting iPhones meant for U.S. consumers should be manufactured domestically rather than abroad, such as in India. Some analysts have estimated that moving manufacturing to the United States could more than double the consumer price of an iPhone. Mr. Trump said he had an “understanding with Tim” that he wouldn’t be building iPhone factories in India, but the infrastructure there would be almost impossible to replicate in the United States.

Market reactions were swift. U.S. markets opened sharply lower, with the S&P 500 index falling more than 1 percent $SPX ( ▲ 0.41% ) while Apple $AAPL ( ▲ 0.42% ) saw shares drop by 3%. European carmakers also suffered substantial losses. Shares in Stellantis $STLA ( ▼ 3.55% ) and Mercedes-Benz $MBGYY ( ▼ 1.61% ) fell about 4.5 percent, and shares in Volkswagen $VLKAY ( ▼ 0.99% ) and Porsche $POAHY ( ▼ 1.01% ) were down more than 3 percent.

Economists highlighted the potential adverse effects of such trade policies, which you think Trump would remember from the last time he threw his toys out of his stroller.

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, warned of the "risk of higher prices and lower growth," describing the situation as "really scary for the supply chain."

That’s economist speak for…

Numerous countries and trade officials expressed confusion and frustration over the perceived unpredictability of U.S. trade policy under Trump.

European Union officials, in particular, were left scrambling. Maros Sefcovic, the EU’s trade commissioner, commented that while the EU was committed to a balanced deal, trade must be "guided by mutual respect, not threats."

Throughout the turmoil, the silver lining for the EU was China's engagement. Chinese President Xi Jinping kindly reached out to Germany, offering "China as a reliable economic partner," potentially broadening cooperation in sectors like technology and machinery.

So that’s alright, then, eh?

Shares rose from their lowest point yesterday after the White House said Trump’s tariff comments were not a formal statement of policy.

So the president of the United States can tank world markets, only to have his own staff inform the media that his comments should not be taken seriously.

Have a great weekend and thanks for letting me read the newspaper so that you don’t have to.

Say, is there a story that might cheer me up a bit?

Sure. I don’t think it’s possible to oversaturate with ScarJo.

Scarlett Johansson Makes Her Debut as Director of ‘Eleanor the Great’

The star came across the script for “Eleanor the Great,” already starring June Squibb, and instantly realized, “I know how to make it.” Now she wants to direct again.

Matt Davis lives in Manhattan with his wife and kid.

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