Trump broadens threats on Apple, Samsung, EU as trade war intensifies

On Friday, President Trump threatened that 50% tariffs on the European Union may be coming in June, more than doubling the “reciprocal” rate of 20% that Trump paused.

Here’s what industries and products could be hit hardest, according to the Financial Times.

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Reuters reports:

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First quarter earnings season is beginning to wrap up, with Nvidia’s report on Wednesday serving as the last major earnings event on the calendar for a while.

Throughout numerous earnings calls with analysts, one theme remained dominant: tariffs.

Some notable examples include Walmart saying it may raise prices, which drew heat from President Trump.

“The immediate challenge is obviously navigating the impact of tariffs here in the US,” Walmart CEO Doug McMillon said on the company’s earnings call on May 15. “We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”

Another example came from the maker of Hoka sneakers, Deckers (DECK).

“Based on the tariffs as of today’s date, which are still subject to change, we expect to face an increase of up to $150 million to our cost of goods sold in fiscal year 2026 and with the related yet-to-be-determined impact to demand,” Deckers CFO Steven Fasching said on May 22. “Our teams are closely monitoring changes to tariff policies and continue to evaluate levers to mitigate the impact on our business, including, but not limited to, flexing the pricing power of our brands.”

With Trump’s announcement of new possible 50% tariffs on the European Union and direct shots at US companies like Apple and Walmart, it’s all but certain that this buzzword will remain in play when earnings pick back up in July.

Apple CEO Tim Cook has spent years trying to get the iPhone maker to evade President Trump’s tariffs. But today’s warning from Trump suggests the limits to those efforts.

Yahoo Finance’s Allie Canal notes that Trump’s tariff threats on the company come at a vulnerable time for its business model.

In its latest earnings call, Apple warned of a $900 million tariff-related headwind this quarter. And Wall Street analysts have questioned whether it’s even feasible for Apple to shift manufacturing to the US and escape tariffs.

Our Senior Columnist Rick Newman notes that while Trump’s fixation with Apple isn’t new, his approach to tariffs has some important differences this time around.

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Bloomberg reports:

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President Trump proposed on Friday raising tariffs on goods from the European Union to 50%, starting June 1.

“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump posted on Truth Social. “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.”

Trump previously imposed a 20% so-called reciprocal tariff on the EU on April 2 but then rolled it back to 10% temporarily while trade talks ensued.

The EU sent US officials a trade proposal on Thursday, which called for gradual tariffs for some non-sensitive items as well as some mutual investments and strategic procurement. At the same time, the bloc has put together a package of retaliatory tariffs affecting roughly $108 billion in goods.

But the talks fell short of US expectations, the FT reported Friday. Officials will meet next month to determine if the two parties can avoid another escalation.

Trump’s shot at the EU came shortly after he threatened to raise tariffs on Apple (AAPL) if the company does not manufacture iPhones in the US.

Worries about a chill in US-China trade relations are easing after a call between senior officials on Thursday, seen as a positive sign of high-level engagement in talks for a broad tariffs deal.

The officials agreed on the need to keep lines of communication open, the two sides said in closely aligned statements on Friday.

In recent days, the two countries have begun feuding again over US curbs on AI chip exports to China. That has stoked worries that the thaw in the trade war agreed at Geneva talks was at risk.

Bloomberg reports:

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