Trump threatens new tariffs on EU and Apple

On May 23, 2025, President Donald Trump renewed his tough rhetoric on trade, specifically targeting the European Union and Apple, which have significant economic ties to the United States. Trump threatened to impose 50% tariffs on European imports and a 25% tariff on iPhones that are manufactured outside the United States, stating that trade talks with the EU are stagnant. These threats have caused fluctuations in the stock market, with investors reacting negatively as concerns about international trade tensions resurface. Jim Cramer from CNBC advised investors to remain calm and not to panic in response to Trump's statements. He emphasized that this situation requires a measured approach, as Trump's aggressive trade tactics have historically been a mix of negotiation strategy and actual policy. Cramer echoed sentiments about the market's resilience, mentioning that while stocks had been up significantly prior to these warnings, the potential for game-changing tariffs raises anxieties. Analysts expressed mixed opinions on the seriousness of Trump's threats, with some believing he is using these tactics as leverage in ongoing negotiations. Analysts predict that the market's pullback may not be as severe as earlier incidents, as investors have had time to adapt to Trump's unpredictable style. However, uncertainty remains high as Trump's actions can continually influence market dynamics. Amid these developments, Apple's predicament intensifies, particularly as it considers shifting more production to India in light of rising tariffs. Cramer pointed out that if tariffs do take effect, Apple could either raise its prices or absorb the costs—a move that investors might find unappealing. Apple has faced scrutiny from the White House as Trump aims to bring manufacturing back to the United States. Investors are advised to closely monitor the situation, as the ongoing trade war continues to impact stock valuations, particularly in tech sectors.