Trump threatens EU with 50% tariff from June - as he issues warning to Apple over iPhones

Donald Trump has threatened to impose a 50% tariff on the EU, starting from next month, after saying that trade talks with Brussels were "going nowhere".

Mr Trump made the comments on his Truth Social platform. It marks a fresh escalation in his trade row with the European Union, which he has previously accused of being created to rip off the US.

While the US has done deals with the UK and China to reduce their peak exposure to his trade war, the president's EU threat, which would cover all EU imports to the US, would risk retaliatory measures from Brussels if carried through. Money latest: Trump's message to UK on energy bills Mr Trump said of talks between his administration and the EU: "Our discussions with them are going nowhere! "Therefore, I am recommending a straight 50% tariff on the European Union, starting on June 1, 2025.

There is no tariff if the product is built or manufactured in the United States." The European Commission was yet to respond to the remarks. Officials signalled there would be no comment until after a call between top US-EU trade figures due later on Friday.

Financial markets, however, were quick to take a view. European stock markets were sharply down across the board.

The FTSE 100 in London was more than 1.2% lower shortly after the Truth Social post appeared, while Germany's DAX and the French CAC 40 were in the red to the tune of more than 2%. US stock markets fell at the open on Wall Street.

The tech-focused Nasdaq was down more than 1%. The potential for damage to the global economy saw Brent crude oil sink by more than 1% to $63 a barrel.

The dollar took a hit too, as the news only intensified existing market worries this week about the sustainability of US government debt levels. The pound was trading at levels last seen in February 2022.

Mr Trump said earlier that Apple will be forced to pay 25% tariffs on its iPhones unless it moves all its manufacturing to the US. Apple shares dropped more than 2% in premarket trading after the warning, also posted on Truth Social.

"I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or any place else," wrote the president. "If that is not the case, a tariff of at least 25% must be paid by Apple to the US." Production of Apple's flagship phone happens primarily in China and India, which has been an issue brought up repeatedly by Mr Trump.

Read more:Trump trade argument against UK doesn't add up Why Trump blinked in US-China trade war On Thursday, the Financial Times reported Apple was planning to expand its India supply chain through a key contractor. Taiwanese company Foxconn is planning to build a new factory in the Indian state of Tamil Nadu, according to the paper, to help supply Apple.

Sky News has contacted Apple for comment..