EU Urges Respect in Talks as Trump Threatens Tariff of 50%

Stocks Slump as US President Also Warns of 25% Tax on Apple's Imported iPhones

- 

BRUSSELS - The European Commission urged the US on May 23 to bring respect, not threats, to trade talks after US President Donald Trump pushed for a 50 percent tariff on EU goods.

Mr. Trump had threatened on May 23 to ratchet up his trade war again, pushing for the tariff on EU goods starting on June 1 and warning Apple he may slap a 25 percent levy on all imported iPhones bought by US consumers.

The twin threats, delivered via social media, roiled global markets after weeks of de-escalation had provided some reprieve in the tariff battle.

Major US stock indexes and European shares fell and the dollar weakened, while the price of gold rose. US Treasury yields fell on fears about the tariffs' effect on economic growth.

Mr. Trump's broadside against the EU was prompted by the White House's belief that negotiations with the bloc are not progressing fast enough. His saber-rattling also marked a return to Washington's stop-and-start trade war that has shaken markets, businesses and consumers and raised fears of a global economic downturn.

And the President's attack on Apple is his latest attempt to pressure a specific company to move production to the US, following automakers, pharmaceutical companies and chipmakers.

The US, however, does not mass-produce smartphones — even as US consumers buy more than 60 million phones annually — and moving production would likely increase the cost of iPhones by hundreds of dollars.