Trump threatens EU with 50% tariffs - as Apple faces 25%

Donald Trump has threatened to impose 50% tariffs 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 risks retaliatory measures from Brussels.

Financial markets responded by fleeing risk - with European stock markets down across the board.

The FTSE 100 in London was down more than 1.2% while Germany's DAX and the French CAC 40 were more than 2% lower.

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 iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," wrote the president.

"If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S."

Production of Apple's flagship phone happens primarily in China and India, which has been an issue brought up repeatedly by President Trump.

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.

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