Trump threatens tariffs on smartphones made outside U.S.

Trump threatens tariffs on smartphones made outside U.S.

WASHINGTON, May 24, 2025 — President Donald Trump has threatened a 25% tariff on smartphones manufactured outside the United States, including those made by Apple and Samsung. This announcement comes amidst ongoing trade tensions between the U.S. and the European Union (EU) [1].

Trump made the statement on Friday, May 23, 2025, via social media, stating that he intends to impose a 50% tariff on all imports from the EU starting June 1, 2025, unless the products are manufactured in the U.S. [1]. This move follows Trump's earlier threat to impose a 25% tariff on Apple products, which he believes are being manufactured in Asia rather than the U.S. [1].

The president's latest announcement extends the tariff threat to all smartphones made outside the U.S., not just Apple's iPhones. Trump expressed frustration over Apple's decision to shift production to countries like India and Vietnam, despite U.S. investments [1]. He emphasized that the tariffs would apply to any smartphone manufacturer that does not relocate its production to the U.S. [1].

The EU has responded to Trump's threats, stating that it is committed to securing a deal that works for both parties and that the EU's trade with the U.S. is unmatched [1]. German Foreign Minister Johann Wadephul echoed this sentiment, noting that tariffs would harm both economies and that negotiations are still ongoing [1].

The financial markets reacted to the announcement, with the S&P 500 index falling by approximately 0.67% [1]. This highlights the market's sensitivity to Trump's trade policies and the potential impact on consumer prices and corporate profits.

Analysts have suggested that Trump's tariff threats may be a negotiating ploy, aiming to demonstrate his resolve in hopes of securing better trade terms [1]. However, economists caution that such tactics could damage the U.S.'s reputation as a reliable trading partner and undermine long-term economic stability.

References:

[1] https://www.ironmountaindailynews.com/news/2025/05/trump-threatens-50-tariffs-on-eu-25-penalties-on-foreign-made-smartphones/