Apple shares fall 2.82% as president demands iPhones be made in the US
President Donald Trump reignited global trade tensions on Friday by threatening sweeping new tariffs on the European Union and Apple, triggering a broad selloff in markets and raising uncertainty for multinational manufacturers.
In a series of posts on his Truth Social platform, Trump said he was “recommending a straight 50% Tariff on the European Union” starting 1 June, claiming trade talks with the bloc were “going nowhere.” He also demanded that Apple manufacture iPhones in the United States or face a 25% tariff on all devices made abroad.
“I’m not looking for a deal,” Trump later told reporters at the White House. “We’ve set the deal. It’s at 50%.” He added that companies building manufacturing plants in the US could potentially see delays to tariff implementation, but reiterated his broader stance: “There’s no tariff if the product is built or manufactured in the United States.”
Apple in the crosshairs
Apple (NASDAQ:AAPL) shares dropped 2.82% to US$195.69 in late Friday trade after the company became a direct target of Trump’s latest salvo. The president said he had previously warned Apple CEO Tim Cook that iPhones sold in the US must be made domestically.
“If that is not the case,” Trump wrote, “a Tariff of at least 25% must be paid by Apple to the U.S.”
While Apple has shifted some production to India in recent years, including most iPhones sold in the US this quarter, analysts say relocating assembly to the US is not economically viable. Wedbush analyst Dan Ives called the idea a “fairy tale,” estimating US-made iPhones would cost upwards of US$3,500 due to labour and infrastructure constraints.
Samsung and other smartphone manufacturers would also be subject to the 25% tariff, Trump confirmed, saying, “Otherwise it wouldn’t be fair.”
Market fallout
US markets responded swiftly to the tariff threats. The S&P 500 fell 1.18%, the Nasdaq dropped 1.53%, and the Dow Jones slipped 0.94%, while European indices were also dragged lower. The Stoxx Europe 600 index fell nearly 2%, with Germany’s DAX and France’s CAC 40 each losing more than 2.5%.
Investors fled to safe-haven assets, with the Swiss franc rallying and European government bond yields dropping sharply. Banking stocks led losses across Europe as concerns grew over the impact of tariffs on global trade and corporate earnings.
EU response and global implications
The European Commission declined to comment immediately but had previously proposed a “zero-for-zero” tariff arrangement, which Trump rejected. EU leaders, including Germany’s Economy Minister and France’s Foreign Minister, warned that the tariffs would hurt both economies and signalled readiness to retaliate if talks fail.
Ireland’s Prime Minister Micheál Martin described the move as “enormously disappointing,” and Dutch Prime Minister Dick Schoof called for calm, saying the EU would maintain its current negotiation strategy but prepare for escalation.
Policy ambiguity and business reaction
Despite the rhetoric, the White House has not yet issued a formal executive order. Treasury Secretary Scott Bessent said the EU’s negotiating proposals lacked quality and expressed hope the tariff threat would “light a fire” under talks.
Business leaders expressed alarm. Volvo Cars warned that tariffs could price out its Belgium-made EVs from the US market. Analysts at Bank of America and JPMorgan said Apple would likely try to absorb some of the tariff cost or pass it along through price hikes, while others warned that the unpredictability of tariff policy was increasingly difficult for companies to manage.
