US President Donald Trump again threatened to intensify his trade war on Friday, recommending a 50% rate on European Union products from June 1, and warning Apple that he could impose a 25% rate on all iphones made outside the United States.
The twin threats, delivered via social networks, have gone a tour of the world markets after weeks of de -escalation provided a little stay. The S&P 500 dropped 1.2% at the start of negotiations, the NASDAQ dropped by 1.5% and European shares dropped by 1.7%.
The actions of German car manufacturers and luxury companies – some of the most exposed to prices – have dropped. Porsche, Mercedes and BMW fell between 2% and 4.5%. The Essilorluxotica sunglasses company was 5.5% lower.
Apple’s actions dropped 3.7% in pre-commercial exchanges, as well as the actions of other technology technologies. Trump did not give a delay for his warning to Apple. More than 60 million phones are sold each year in the United States, but the country has no manufacturing of smartphones.
“The European Union, which was formed with the main aim of taking advantage of the United States on trade, was very difficult to manage,” wrote Trump on his social site Truth. “Our discussions with them are not going!”
Friday, the European Commission refused to comment on the new pricing threat to 50%, saying that it would expect a telephone call between the head of the EU trade, Maros Sefcovic and his American counterpart Jamieson Greer.
Envoyes from the 27 EU countries are expected to meet on Brussels trade later on Friday.
Last year, total EU exports to the United States totaled around 500 billion euros, with Germany [161 billion euros]Ireland [72 billion euros] and Italy [65 billion euros] – The three largest exporters. Pharmaceutical products, cars and automotive parts, chemicals and planes were among the largest exports, according to EU data.
“The EU is one of Trump’s least favorite regions, and it does not seem to have good relations with its leaders, which increases the chances of an extended trade war between the two,” said Kathleen Brooks, research director at XTB.
Automobile companies oriented to exports in Europe – in particular the main automotive manufacturers of Germany – are strongly exposed, with few short -term options other than smaller discounts and price increases.
Audi de Porsche and Volkswagen has no American production. Some, including Audi and Volvo Cars, have already declared that they would move a certain production.
The CEO of Volvo Cars, Hakan Samuelsson, told Reuters on Friday that customers should pay a large part of the cost linked to prices and that it could become impossible to import the smallest cars in the company’s range in the United States.
But it remained hope that Europe and the United States will soon come to an agreement.
“I believe that there will soon be an agreement. It could not be in the interest of Europe or the United States to close the trade between them,” said Samuelssson.
Optimism “ annihi ” ‘
Trump had sent markets in shock in early April after imposing prices on almost all inhabited premises around the world, including a massive tax of around 145% on goods imported from China. Investors responded by selling American assets furiously, because the samples have led them to question the status of security that America has long appreciated, and although the markets have recovered, the confidence of business and consumers plunged in the United States.
The response to the shock forced the White House to suspend most prices until early July, leaving a 10% tax in most imports of other nations and 30% on most Chinese products. But Trump has kept the possibility of relaunching certain samples.
The White House has been in negotiations with many countries on commercial issues, but progress has been unstable. The financial leaders of the group of seven industrialized democracies tried to minimize disputes over prices earlier this week during a forum in the Canadian rocky mountains.
“All the optimism on commercial transactions collapsed in a few minutes – a few seconds,” wrote Fawad Razaqzada, market analyst at City Index and Forex.com, in a note on Friday.
Target the apple
“I have long informed Tim Cook of Apple that I expect their iPhones, which will be sold in the United States of America, will be manufactured and built in the United States, not in India, or anywhere else,” said Trump in an article on Social Truth Friday morning, referring to the CEO of Apple.
“If this is not the case, a rate of at least 25% must be paid by Apple in the United States”
It is not clear if a price on an sole proprietorship would face legal obstacles. Apple refused to comment on Trump’s threat.
In response to market upheavals, the White House had given exclusions from steep prices on smartphones and other electronics largely imported from China, a break for apples and other technological companies based on imported products.
Apple aims to make most of its iPhones sold in the United States in India factories by the end of 2026, and accelerates these plans to navigate in potentially higher prices in China, its main manufacturing base, said a source told Reuters.
But Trump and others, including the Secretary of Commerce, Howard Lunick, suggested that Apple could make iPhones in the United States. In February, Apple said that it would spend $ 500 billion over four years to extend hiring and installations in nine American states, but it did not say that the investment would go to the manufacture of iPhone in the United States
The iPhone manufacturer said most of its smartphones sold in the United States would come from India during the June quarter.
“It is difficult to imagine that Apple can be fully in accordance with this request from the president in the next 3 to 5 years,” said Gil Luria, analyst of DA Davidson & Co.
