International Trade Bulletin — May 23, 2025

1. U.S. Imposes 50% Tariffs on EU Imports

President Donald Trump announced that, beginning June 1, 2025, all goods imported from the European Union will face a 50% tariff, citing stalled trade negotiations. He also threatened to levy a 25% duty on Apple’s iPhones and other foreign-made electronics from Samsung and other firms, unless production is repatriated to U.S. soil.

2. Negative Market Reaction

The announcement triggered a sell-off in global equity markets: the Dow Jones Industrial Average fell 0.6%, the Nasdaq Composite dropped 1%, and Apple’s stock declined 2.6%, wiping out more than $70 billion in its market value.

3. EU’s Potential Counter-Measures

EU Trade Commissioner Maroš Šefčovič responded that trade relations must be grounded in mutual respect rather than coercion. He indicated that the EU is reviewing possible retaliatory tariffs on U.S. automobiles, chemicals, and medical devices.

4. Impact on Apple and the Tech Sector

President Trump demanded that Apple bring iPhone manufacturing back to the U.S., but analysts warn that higher domestic labor and assembly costs could drive the retail price of an iPhone to $3,500 per unit.

5. Shipping Cost Surge Ahead of U.S.–China Deadline

With the U.S.–China tariff exemptions for low-value goods set to expire on June 1, U.S. importers rushed to finalize orders, sending spot rates for 40-foot containers from China to the U.S. West Coast from $3,500 to $6,500, and to the East Coast from $4,500 to $7,500.

6. Flight to Safety

In response to heightened trade uncertainty, gold prices climbed toward $3,500 per ounce as investors sought safe-haven assets. Concurrently, the U.S. dollar weakened against major safe-haven currencies, including the Japanese yen and Swiss franc.